The effects of foreign direct investment (fdi) on the environment in developing countries are now assessed quite differently from in the past

5.2. Do MNCs help or harm developing countries?
The presence and activities of MNCs in developing countries have been a subject of controversy in discussions on development. According to Borensztein, Gregorio, and Lee (1998) “Governments are liberalizing MNC regimes as they have come to associate MNCs with positive effects for economic development and poverty reduction in their countries” (p. 115). Of course, in practice, objectives to attract MNCs differ from country to country and the impact of MNCs is not always desirable. However, economic growth and industrialization trigger globalized world that enables MNCs to become a useful tool for economic growth.