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

Azaria Galvan

Business

3 November, 13:56

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

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Answers (1)

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Alex Liu · Answer 1

Answer: Camille is referring to resource transfer effect.

Explanation:

In resource transfer effect, it is perceived that an organization is using its resources to aid the government or ruling body.

In the scenario above, it can be seen that the investment in swaziland-based manufacturing plant will promote significant economic development, and not just benefit the company, therefore, this is a resource transfer effect.