Though operating a plant overseas is not much di1ferent from running a plant at home, there are certain special considerations that must be attended to. After personnel practices-the subject of HUMAN RESOURCE DEVELOPMENT-the most important consideration is the choice of the technology to be used. This problem is a very thorny one, because it can be a no-win situation.
From the MNC's viewpoint, it is best to choose the latest technology, which usually is capital intensive. This way the MNC not only exploits the efficiency . associated with capital-intensive equipment and processes, but also lessens the . problems that can arise from the human factor-labor. From the nation-state's viewpoint, the use of capital-intensive technology deprives the country of the job opportunities it had hoped for. Thus most developing countries would like to see labor-intensive rather than capital-intensive technology. The problem is that labor-intensive production processes, which create jobs for the host country, often increase the cost of a product, making it less competitive on the global market. Thus, many states find themselves in the peculiar position of welcoming high-tech industries that will enable them to compete and generate needed foreign currency, knowing full well that a low-capital, labor-intensive production technology would be more appropriate, given the local labor force. That is the paradox of appropriate technology.
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