of several resources productive facilities, skilled labor, materials, effective organizations, and capital. He further contended that the MNC, if not the only source of most of these resources in the quality and quantity required by developing countries, is, most certainly, the most efficient source. He contended that foreign capital is the "engine of growth" for the developing country, and that only the MNC with a profit incentive is likely to provide such capital. Vernon saw no evils in the activities of MNCs. Supporting this perspective, a Brookings Institution study (Bergsten, Horst, & Moran, 1983, p. 355), said that: Traditional theory posits that foreign direct investment contributes positively to development. It brings those societies most in need of them capital, technology, and management and marketing skills. In addition to the direct income effects, jobs are created and government tax revenues, which can be used for further development, are augmented.
William Tabb (1984) (Queens College, CUNY) stated an opposing view, however, when he said that: "On the one side are national and regional producers who stand to be squeezed out with further centralization and concentration of capital, which is the net effect of multinational corporate activities" (p. 215). He went on to say that capitalist "interests look very different to the few dozen truly global corporations whose profitability requires open access to all nations" (p. 215). Such firms have little in common" with small business or small countries . . . The giant firms learned long ago how to use government (major power) intervention to their advantage . . . to manipulate . . . governments (developing countries) through foreign and military intervention" (p. 215). Lisa Wheaton (1984a) (National Council of Churches) argued that military intervention by the United States in the Dominican Republic was as much for the benefit of American MNCs a...