Global Business and the Making of the Modern World
Chapter 6: MNEs, economic development, and social change in Asia
This chapter offers a historical perspective on the role of MNEs in the economic development and the process of social change in Asia. Since the nineteenth century MNEs have been important in transferring across borders knowledge, technology, and organizational skills, and in facilitating trade flows. However, as the previous chapter on Iran explored, this impact has typically involved costs as well as benefits. Outcomes were shaped not only by MNE strategies, but also by the economic, social, and political characteristics of the host economy. This chapter explores this issue further by looking broadly at Asia. The chapter has three sections. First, it surveys long-term patterns of MNE investment in Asia. Second, it examines the developmental impact of this investment, again providing a long-term perspective. Finally, it explores the role of MNEs on aspects of social change and environmental sustainability in Asia.
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