00:01
But we are going to be looking at an analysis of the role that multinationals, multinational companies play in terms of development in different economies.
00:11
We are focusing our analysis on two parts, the import substitution and export promotion.
00:18
By definition, input substitution is simply referring to the activities that an economy will pursue in order to limit the products that they import, from abroad and instead manufacture their own product to match those that will be supplied from abroad.
00:42
So that's input substitution.
00:44
On the other hand, is export promotion.
00:47
Export promotion simply means all the activities and support the government has on manufacturers whose products are destined for the export market you will understand okay so that's basically export promotion and you will understand then that when we're dealing with input substitution imports is something that any government would want to minimize because these are leakages and when you deal with exports exports are desirable because they are an injection in the economy.
01:35
So most businesses that actually have brought their technologies in the various countries, especially the developing countries, you find that they've benefited actually from businesses opening up in their countries because they are not in that regard having to import goods from abroad.
01:58
So instead they make use of the products that have been introduced within their own borders.
02:05
So that's the major rule that multinationals have played.
02:09
And when it comes to exports, it's exactly the same thing.
02:12
You've had many car manufacturers, for instance, opening up factories and plants in some of these african countries like south africa.
02:24
So when they do that, they actually not only pass on the technological, expertise, but they produce vehicles that are also destined for the export market.
02:38
There are many cars that are coming from south africa to the united states as a result of such initiatives...