Bricklanes Inc. is a company that designs and manufactures materials for interior decorations. The company expands its business in Cronje Republic to gain the advantages of foreign direct investment. As a result, several companies in Cronje Republic have adopted new advancements that are introduced by Bricklanes Inc. in their processes. In this case, what benefits has the host country acquired?

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31 January, 01:10

Bricklanes Inc. is a company that designs and manufactures materials for interior decorations. The company expands its business in Cronje Republic to gain the advantages of foreign direct investment. As a result, several companies in Cronje Republic have adopted new advancements that are introduced by Bricklanes Inc. in their processes. In this case, what benefits has the host country acquired?

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Cadence Mann · Answer 1

Technology Spillover

Explanation:

Technology spillover applies to both the unintended technological capabilities for companies which emerge from several other companies ' research and development efforts without sharing the expenses.

Companies from Cronje Republic have taken the research and development capabilities of Bricklanes Inc. without sharing the benefits.

Technology spillover through leading companies emerging from advanced economies to companies in emerging economies is projected to be particularly powerful.