ZQMS-ARC-REC-002

REGION: MATEBELELAND NORTH SEMESTER: 2.2 YEAR 2022

PROGRAMME Bachelor Of Science Honours In Development Studies (BSCHDS) INTAK E: 20

FULL NAME OF STUDEN T: SVOSVE MATRON PIN: P2074241X

EMAIL ADDRESS: shantymetty88@gmail.com

CONTACT TELEPHONE/CELL: 0773433148 ID. NO.: 23-068706 E 23

COURSE NAME: TECHNOLOGY AND DEVELOPMENT COURSE CODE: BSDS207

ASSIGNMENT NO. e.g. 1 or 2: 1 STUDENT’S SIGNATURE sm

DUE DATE: 07 MAR 2022 SUBMISSION DATE: 07MAR 2022

ASSIGNMENT TITLE: Evaluate the role and contribution of Multinational Corporation (MNCs) to
technology transfer and development in the Less Developed Countries (LDCs).

Instructions

Marks will be awarded for good presentation and thoroughness in your approach.
NO marks will be awarded for the entire assignment if any part of it is found to be copied directly from printed materials or
from another student.
Complete this cover and attach it to your assignment. Insert your scanned signature.

Student declaration
I declare that:
 I understand what is meant by plagiarism
 The implications of plagiarism have been explained to me by the institution
 This assignment is all my own work and I have acknowledged any use of the published or unpublished works of
other people.

MARK ER’S COMMEN TS:

OVERALL MARK: MARK ER’S NAME: MARK

ER’S
SIGNATURE: DATE: _______________________________________
Issue Date: 3 October 2013 Revision 0
Definition of key words:

Evaluate is to weigh the advantages and disadvantages of the given scenario or assertion.

The role and contribution of (MNCs), is the part to play which may be given to technology
transfer in (LCDs).

(MNCs) this are huge industrial organization having a wide network of branches and subsidiaries
spread over a number of countries.

(LCDs) this are countries which earns low income to invest in terms of economic and financial
system like Zimbabwe.

Technology transfer is the general process of moving innovations and technologies from
developers or originators such as research laboratories, universities, private individuals and
private organization or companies to users and other firms (Valera et al, 1987).

Rogers and Shoemaker (1971) try to link technology transfer to innovation and view technology
as a design for instrumental action that reduces the uncertainty of cause effect relationship
involved in achieving a desired outcome. While Foster (1962), Service (1971) and Merrill (1972)
able to view technology transfer broadly within context of cultural change and the ways in which
technology affect change.

Introduction:

Technology is the knowledge of the manipulation of nature for human purposes; this implies that
all practical or technical skills ultimately derive from alteration or manipulation of nature. It is
essential to evaluate the roles and contribution of (MNCs) to technology transfer and
development in less developed countries. This may help the writer to look the main advantages
and disadvantages of (MNCs) to technology transfer.

Multinational corporations have played a pivotal role in contribution of technology transfer and
development in Less Developed Countries. There is positive and negative roles that (MNCs)
contribute to technology transfer and development. Investment in education facilities diffusion
and transmission of knowledge accelerate receptivity to new innovations and increase knowledge
of the value of science and technology in economic development. In addition, (MNCs) improve
the balance of payment in developing countries thorough foreign currency earnings since they
mainly produce for export, providing access to global markets. This may also improve the
standard of living to people through the creation of jobs to them. Many people were unemployed
because of situation which may hinder the economy in a country.

Furthermore, the (MNCs) contribute to developing countries through technical skills

development programmes for staff and financing tertiary students and investment in education
infrastructure such as schools. Students were able to learn more through the development
initiatives that may insists them in different levels of education. For instance civic education is
the most imperative type of education which helps many students especially in Zimbabwe.

Also widening the tax and revenue base of countries by way of cooperate tax, PAYE and various
other levies payable to government in host countries. This may promote basic research by
government in terms of increasing economy. MNCs) also play the important role in developing
of sectors for example the building of roads for people to be able to transport their goods easily
and fast.

The other sector which is important is on health sector, the development of hospitals and clinics
people need serious care in terms of health. The Multinational corporations come with an aid to
people in less developed countries by supplying the facilities like medical equipment and other
facilities to use in hospital. Above all some nurses and doctors were gain experience through
education and increasing of knowledge because of technology transfer which may be transferred
to developing countries.

Another contribution of development of infrastructure especially by developmental NGOs, they

assist with capital for use in some disaster like cyclones or drought some of the cyclones Like,
Ida, Elaine and others. Recently there is Corona that destroy people and economy globally, the
MNCs come again and plays their roles to technology transfer and development with funding for
developmental projects and programs in rural areas also where government has no capacity

The MNCs donate with the provision of capital for investment in productive sectors of economy
through the IMF/ WB SAPs. The competition y MNCs improves the quality and diversity of
goods and service, providing consumers with a wide variety that meets their needs and
preferences. Multinational Corporations may able to transfer technology by promoting of better
government system and protection of human rights to people. Such that people should be free
and know their rights to avoid exploiting them.

Schumpeter (1942) also gave a lot of importance to entrepreneurship as a source of innovation

thus technology. Schumpeter argued that the innovation and technological change of nation
comes from the entrepreneurs, or wild sprit. He believed that these individuals are ones who
make things work in the economy of the country. He asserted that actors that drive innovation
and economy are big companies which have the resources and capital to invest in research and
development. The role of entrepreneurs in development of innovations and technology include
entrepreneurs are catalyst through facilitating technology transfers from other countries
especially (MNCs).

John dunning has been a pioneer in the work of foreign companies. He used his expertise and
knowledge of the field to develop his theory or paradigm. His plan was to try and explain the
range of activities by MNCs trade from 1977 to 1980.

Cantwell (1989, 2000) has put forward a dynamic evolutionary approach to the growth of MNCs
based on the innovation and technological accumulation. His model is the result of detailed
empirical study of innovation activities in the manufacturing of sector of developed countries.

However there are some challenges associated with the role of (MNCs) to technology transfer
and development in the Less Developed Countries. Investment in research and development by
MNCs limited only to areas of interest to MNs. Brain drain that slows down technological
progress, many people were forced to leave the country and go out of the country because of low
income salaries that they earn in developing countries. This type of problem might normally
affect nurses, teachers and other factors which may get their income through government.

Financial and technological prowess of MNCs may push out local companies leading to their
closure and incapacity to drive local technological development and innovation. For example in
Zimbabwe many local companies were failing down because of shortages of capital to increase
their business which were runner by different types of companies. These large companies like
MNCs come and took the opportunity away for themselves.
Moreover, the MNCs can have significant influence with regard to policy formulation in host
countries that may be detrimental to the needs of local citizens. In the technological realm, they
may influence technological policies in developing countries. This may end up hinder the
development of the less developed countries mostly. Also poor working conditions and salaries
may impact the capacity of local citizens to afford adoption of knowledge due to high levels of
poverty.

These challenges may affect everyone including children, less education to them because of
poverty which hinders the economy of the country because of bad contribution that MNCs bring
to technology transfer and poor development might grow further to a country. Capital intensive
may lead to unemployment and underemployment due to shortages creation of jobs people may
suffer to poverty and drought in a country.

Technologies transferred may be detrimental to environmental sustainability resulting in

environment degradation. There were more like refugees they come to destroyed everything,
unnecessary building, and cutting down of trees trying to open up more spaces of their building.
By so doing they do not comply with environmental laws in host countries all they do is to
continue caused the formation of land degradation and soil erosion that may affect the
environment.

The Multinational corporations have caused some of the challenges to technology transfer and
development in Less Developed Countries. Poor working conditions and levels of wages, salaries
compared with those paid in their countries of origin. In East Asia they have been accuse of
establishing “’sweet shops” characterized by long hours, poor working conditions and low
salaries for local people. In Zimbabwe the Chinese are accused of violating the rights of workers
and exploiting them for low wages under unhealthy conditions.

They contribution to the widening gap between the rich and poor by paying top management and
executive high salaries and perks while offering poor salaries to low level staff. Aid whether
developmental of relief, serves the interest of the donors Western countries instead of the
developmental needs of the recipient countries. The donor promotes their political, economic and
trade interest through giving aid to developing countries. It is therefore said to imperialistic in
nature, that is why despite receiving massive flows of aid it has not stimulated economic growth
and poverty reduction.

MNCs play a role to technology transfer and development that may end up cause conflicts
among people in their countries. The most affected people were people who are staying in rural
areas whereby the aid that might be send t people in some countries like Zimbabwe were not able
to focus with those people. It never reaches the grassroots people in developing countries by so
doing people were started to fight each other because of corruption which the government
created.

In conclusion, Multination Corporation (MNCs) plays a role in contribution to technology

transfer and development in Less Developed Countries (LDCs). Some of the role is in favours of
people while some roles are the challenges that developing countries may end up facing them.
Including investment in education, MNCs helps with funding through health sector, and
entrepreneurship and others. However, MNCs has some challenges which affect people like
brain drain to country, detrimental to environmental sustainability that cause land degradation
and many more.
References:

Cantwell, J (1989). Technology innovation and Multinational Corporations Oxford Blackwell.

Dnning, J H (1980). Explaining changing patterns of international production.

Foster (1971) able to view technology transfer broadly.

Merill (1972) helps people to know about technology and how critical it is.

Mohr, (1987), the central unity of analysis in the stream of works the innovation.

Rogers and shoemaker (1971) try to link technology transfer to innovation.

Schumpeter (1942) he also gave a lot to entrepreneurs.

Stocking, (1985) in explaining the diffusion process, research focused on identification of that
innovation to influence diffusion.

Teece, DJ (1977), Technology transfer y multinational firms the resource cost of transferring
technology known how. The Economic Journal, 87

Valera et al (1987) postulates technology transfer of moving innovations technologies from

developers.