Peter F. Drucker Boxed Set (8 Books) (The Drucker Library)

CHAPTER FOUR

Multinationals and Developing Countries

Myths and Realities

I

FOUR ASSUMPTIONS ARE commonly made in the discussion of multinationals and developing countries—by friends and enemies alike of the multinational company. All four of these assumptions are false, which explains in large measure both the acrimony of the debate and the sterility of so many development policies.

These four false but generally accepted assumptions are: (1) The developing countries are important to the multinational companies and a major source of sales, revenues, profits, and growth for them, if not the mainstay of “corporate capitalism”; (2) foreign capital, ...