In Belgium, oil refining （78 per cent） and electrical engineering （87 per cent） showed the highest rates of foreign participation.MNEs foreign direct investment most often is concentrated in technology- intensive industries, therefore, research and development is another area of tension. Multinational corporations usually want to concentrate their R&D efforts, especially their basic research. With its technology transfer, the multinational corporation can assist the host countrys economic development, but it may leave the host country dependent on flows of new and updated technology.Furthermore,the multinational firm may contribute to the brain drain4 by attracting scientists from host countries to its central research facility. Many countries have demanded and received research facilities on their soil, where they can better control results. Many countries are weary of the technological dominance of the United States and Japan and view it as a long-term threat. Western European nations, for example, are joining forces in basic research and development under the auspices of the so-called Eureka project, which is a pan-European pooling of resources to develop new technologies with both governmental and private sector help. Many of theeconomicbenefitsofforeigndirectinvestmentare controversial as well. Capital inflows may be accompanied by outflows in a higher degree and over a longer term than is satisfactory to the host government. For example, many of the hotels built in the Caribbean by multinational chains were unable to find local suppliers and had to importsupplies and thus spend much-needed foreign currency. Many officials alsocomplain that the promised training of local personnel, especially formanagement positions, has never taken place. Rather than stimulate localcompetition and encourage entrepreneurship, multinationals with theiroften superiorproductofferingandmarketingskillshavestifledcompetition.
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