McCarthy believes swapping pushing for a Champions League spot for a battle against relegation will help Frimpong with his development as a player.
Wolves faced competition from several other Premier League clubs to secure the services of Frimpong, who made his debut against Chelsea on Monday.
McCarthy, whose side tackle Birmingham in the third round of the FA Cup at St Andrew's on Saturday, said: "I hope (signing Frimpong) was down to the way we try to do things here.
"When I asked (Arsenal boss) Arsene (Wenger), he was open to him coming here. What's nice is that Arsene sees us as a club he wants to send his players to.
"He knows what we're about and, if Manny gets in our team and does things the way I want them to be done, he can go back there and be a fabulous player at Arsenal.
"Playing at the bottom of the league is a damn sight harder than playing for Arsenal when you've got the ball 65 per cent of the time.
"He'll learn different things from being here with us.
"We try to play the right way, as everyone knows, but it's not the same coming from a top club. There are different challenges in the games all the time."
McCarthy believes Frimpong can become the latest of Arsenal's youngsters to develop into a top player.
He said: "Everyone at Arsenal thinks he's a good player. Half the Premier League thinks he is as well.
"But Arsenal have got very high hopes for him, like they have for all of their young players, because they've got loads of good kids.
"Manny is someone who can get in there and pass it and get forward. He's got a bit of everything."
Wolves skipper Roger Johnson will face Birmingham for the first time since he moved to Molineux last summer providing he overcomes an ankle knock.
Johnson was dropped after a recent run of poor form, and replaced by Jody Craddock, but has impressed since his return to the side.
McCarthy said: "Roger is in the squad. He actually rocked his ankle in training today so we'll have to see how he is.
"Roger started great after coming here and then, like the rest of us, had a bit of a difficult patch.
"He's been very solid over recent weeks and has been back at it. He's given us that leadership as well and I've been pleased with him.
"It was the right decision when I took him out at the time.
"Jody Craddock was actually brilliant and unfortunately did his hamstring. Who knows, if he hadn't done his hamstring he might still have been in the side because he played well."
