ABSTRACT
The economic development consequences of production by multinational corporations or foreign firms in a host country depend on the efficiency with which they employ resources at their disposal. We need not approach this issue from a worldview perspective; for host countries such a perspective is of little relevance. Rather, it is the use of resources to which citizens have ownership claims that is of significance. Such resources include savings or financial capital, raw materials, land, and labour. There are opportunity costs to their employment by MNCs in terms of the output that would have been created had they been employed by local firms.
