Answer: Camille is referring to resource transfer effect.
Explanation:
In resource transfer effect, it is perceived that an organization is using its resources to aid the government or ruling body.
In the scenario above, it can be seen that the investment in swaziland-based manufacturing plant will promote significant economic development, and not just benefit the company, therefore, this is a resource transfer effect.
Answer:
Resource-transfer effect
Explanation:
Resource-transfer effect is one of the major benefits of foreign direct investment (FDI) for a host country. Resource-transfer effect occurs when FDI contribute positively to a host economy through the supply of technology and capital that can improve the economic growth of the host country.
From the question, Camille's point that Swaziland-based manufacturing plant would not only benefit their company in terms of labor costs but would also promote significant economic development in Swaziland implies that:
1. There are cheap labors in Swaziland and having a manufacturing plant will therefore reduce their labor cost and then cost of production.
2. Swaziland as the host country will derive resource-transfer effect in terms of supply of capital and technology as well as provision of employment to its citizens when the plant start operation.
