Question

Are local suppliers being used by MNEs formed through FDI? Why/why not? Who are local suppliers and what is their role?

Answer 1

It has to be noticed that the major role of FDIs is to strive for economic development in the developing countries where the technology from MNEs is passed to the local suppliers through FDI. This enhances the development on the whole and that is the reason why local suppliers are formed through MNEs. The role of local suppliers is to work along with the MNEs and also.local firm's and enhance the development scenario on the whole. Apart from, they create a note of the local conditions and the psycology and the cultural norms to imply certain development conditions on the whole.