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Economics

Foreign Direct Investment and Technology Transfer

Quick fact

Studies show that foreign-owned firms in developing countries are often 10-30% more productive than local firms, and this productivity gap can spill over to local suppliers and competitors.

Why this is interesting

Why do countries compete so fiercely to attract foreign companies like Tesla or Samsung? Because when a multinational sets up a factory, it often brings more than jobs—it brings the entire blueprint of how to build something better, and that knowledge can spread like wildfire.