How large corporation might influence the economic health of a developing country? using the technical words below: living standard, employment, economy, investments, instability, production.

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When a country is just starting to develop its economy, direct foreign investment by a large company can be very important to it.

What will hopefull happen is that the company will make a lot of investments in buildings and such that are needed to carry out production in the...

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When a country is just starting to develop its economy, direct foreign investment by a large company can be very important to it.

What will hopefull happen is that the company will make a lot of investments in buildings and such that are needed to carry out production in the country.  Beyond that, the company will surely increase the levels of employment in the economy, both in terms of direct employment for the company and in terms of a "multiplier."  In the multiplier effect, the workers employed directly by the company will spend their money in ways that cause others to have jobs selling goods and services to those workers.

The company can reduce instability in the country by improving its economy and its living standards.

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Any large corporation gives the managers at the top enough distance from the workers at the bottom that their decisions can be based entirely on profit motive without any regard for living standards, or steady employment for the workers in this developing country.  The corporation may in fact make investments in this developing country but these may simply be in the form of factories without any regard for infrastructure outside of that which aids in production and increases profit margins.  In terms of benfitting the economy, it will depend to some extent on whether there are any profit-sharing motives with the employees or what kinds of tax deals the corporation has received from the government in order to base their operation there.  If the corporate managers and owners are based outside the developing country, as is often the case, much of the money ends up circulating outside of the developing country.

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