The 49 least developed countries—the poorest of the developing countries—account for around 2 per cent of the total inward FDI stock of developing countries.
The "race to the bottom": Globalization has not caused the world's multinational corporations to simply scour the globe in search of the lowest-paid laborers. There are numerous factors that enter into corporate decisions on where to source products, including the supply of skilled labor, economic and political stability, the local infrastructure, the quality of institutions, and the overall business climate. In an open global market, while jurisdictions do compete with each other to attract investment, this competition incorporates factors well beyond just the hourly wage rate. According to the UN Information Service, the developed world hosts two-thirds of the world's inward foreign direct investment. The 49 least developed countries—the poorest of the developing countries—account for around 2 per cent of the total inward FDI stock of developing countries.