Local firms benefit from supplying services and components to the new factory
Tax revenue to the government
Management expertise improve cause of foreign supervisors
Output of economy will increase, GDP will increase
Exploitation of local workforce
Local competing firms squeezed out
Reduction in cultural identity
Extensive depletion of limited natural resources
State intervention to assist and control business activity
Government assistance for business: training programmes, support for exporters, development area grants.
Government controls over business activity: government should not limit because it will limit their ability to produce goods and services profitably, lasseiz faire: allowing business to make its own decisions without government intervention.
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