POL 271 Lecture Notes - Lecture 27: Multinational Corporation
18 Dec 2016
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The factors of production are the factors needed for the growth and development; they are land, labor and capital. People have added new factors: technology and entrepreneurial ability. Labor refers to what kind of people you have, their health, their education, etc. , Capital refers to anything that can be used to make something. Entrepreneurial ability refers to your management (and possibly specialists). Land: most developing countries are very small which limits the resources that can be domestically produced. Countries get around this by purchasing needed resources from multinational corporations. +countries no longer have to conquer land for more resources because of this. Japan can just buy what they need instead of conquering china like they did in. One problem is that not all countries can pay for the resources they need, but that also means they can"t pay for a war either so they are just stuck in a rut.
