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Essay text:
If a MNC wants to open a subsidiary in Australia, if it succeeds in its financial goals, it will either work on a national scale, and contribute to the national economy, or it will export its goods, and not only contribute to the Australian economy, but also contribute to lowering the deficit.
Since governments only ask for this current account balance to be positive and thus represent a surplus, they are encourage MNCs to invest on their territory.
For sceptics, a last point is interesting to be introduced:
In the 80’s, an Australian economist named John Pitchford held a theory named the “Pitchford Thesis”, in which he believes that a current account deficit is not of matter if driven by the private sector...
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