Multinational Corporations and Lesser Developed Countries — Foreign Investment, Transfer of Technology, and the Paris Convention: Caveat Investor
In recent years, the growth of multinational corporations (MNCs), has been a source of increasing concern in the international community. In an effort to achieve economic independence from these major suppliers of technology, many lesser developed countries (LDCs) have enacted stringent investment and transfer of technology codes. The proliferation of such types of regulation has become a thorn in the relations between developed and underdeveloped nations. These codes and laws have been enacted, however, to rectify perceived inequities and abuses fostered by MNCs. The transfer of necessary knowledge and technology to LDCs has been accompanied by a multitude of restrictions on their use; oftentimes economic resources are depleted in return for inappropriate technologies. Large-scale transfers of technology from MNCs have had the effect of inhibiting the development of indigenous technology creating a danger of perpetual technological dependence upon developed countries. Investment and technology codes, however, are double-edged swords. While alleviating technological dependence and controlling the depletion of economic resources, these laws have, in some instances, created a disincentive for potential investors to invest their capital in the enacting state. MNCs acting as investors within LDCs have produced ample benefits. New technology is imported; employment and training are provided for the labor force; new and necessary products are imported. Some commentators have concluded that the disincentive thus created will greatly reduce benefits enjoyed by LDCs as well as by developed nations.
"Multinational Corporations and Lesser Developed Countries — Foreign Investment, Transfer of Technology, and the Paris Convention: Caveat Investor,"
University of Dayton Law Review: Vol. 5:
1, Article 7.
Available at: https://ecommons.udayton.edu/udlr/vol5/iss1/7