Camille told the management team that investing capital in the Swaziland-based manufacturing plant would not only benefit their company in terms of labor costs but would also promote significant economic development in Swaziland. What type of host-country benefit is Camille referring to?

Question

Quizplus · Accepted Answer

The resource-transfer effect refers to the transfer of technology, skills, and capital from the investing company to the host country. In this case, Camille is referring to the transfer of capital to the Swaziland-based manufacturing plant, which would not only benefit the company in terms of labor costs but would also promote significant economic development in Swaziland.

Camille Told the Management Team That Investing Capital in the Swaziland-Based