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GS3000 - Argentina, TNC's, Manufacturing, Occupy Wall Street/Inequality
Transcript of GS3000 - Argentina, TNC's, Manufacturing, Occupy Wall Street/Inequality
(or multinational) corporations?
(1970) - 7,000, (2000) - 50,000+
Enterprises like GM, Wal-Mart, Exxon Mobil, Mitsubishi, and Siemens belong to the 200 largest TNCs, which account for over half the worlds industrial output.
All of these TNC enterprises have their headquarters located in either North America, Europe, South Korea, or Japan. This reflects the asymmetrical power relations between the North and the South
In 1999, 142 of the leading 200 TNCs were based in only 3 countries - USA, Japan, & Germany
The top TNC's rival nation states in their economic power. A close look at corporate sales and country GDPs reveals that 51 of the world's 100 largest economies are corporations - only 49 are countries
Some critics say economic globalization is only
globalization from above.
TNCs have consolidated their operations in an increasingly deregulated labor market - using cheap labor, resources, and favorable production conditions in the global south has enhanced corporate mobility and profitability
This accounted for 70% of world trade as of 2000.
TNC's like Nike GM, and Volkswagen carry out production, distribution, and marketing in many different locations across the world. Nike, for example, subcontracts 100% of its goods production to 75,000 workers in China, South Korea, Malaysia, Taiwan, and Thailand. Transnational networks have made it easier for TNC's to bypass nationally based trade unions and other workers organizations. Anti-sweatshop activists around the world have responded to these tactics by enlisting public participation in several successful consumer boycotts and other forms of nonviolent direct action.
But does that mean all companies are
held accountable for their rules and regulations?
TNC's can have impact on the structure and
functioning of the international economy.
TNC's have become important players that
influence the economic, political, and social
welfare of many nations.
Here is an example:
Unfortunately, large portions of the development loans granted by these institutions have either been pocketed by authoritarian political leaders or have enriched local businesses and the Northern corporations they usually serve
Unfortunately, Most SAP's fail to create the desired effect on development for developing countries because mandated cuts in public spending translate into fewer social programs, reduced educational opportunities, more environmental pollution, and greater poverty for the vast majority of people
Neoliberal economics and Argentina pg. 54
Positive or Negative?
Globalization and its connections to inequality, poverty and employment -
Two main influences -
2) Technological Progress
1) Offshoring - the practice of moving business processes or services to another country, esp. overseas, to reduce costs
This is often done to reduce costs, avoid regulation, and of course, profit.
Companies will seek to move jobs abroad often for profit maximizing motives.
2) Technological Progress -
The Polarization of the Workforce - Jobs that could be routinized were often sent abroad (covered above) while Technology enabled more productivity at the expense of labor. In other words, more high-skilled technological jobs have opened, sending most middle skilled laborers to greater competition for low-skilled jobs and unemployment. Shrinking of the Middle Class.
The affect on Wages, employment, inequality, and poverty -
1) Threat of offshore if employees attempt to strike. This also keeps global unions weak.
2) Workers in a sense have to compete with wages overseas (driving wages down)
3) More competition for low-income jobs which drives wages down.
4) Each country's desire to be a worthy investment to companies keeps policies highly deregulated with low corporate taxes
5) Corporations have pushed governments to lower taxes with the threat of moving abroad.
(while this is argued to increase output - the loss of jobs can lower output by increasing unemployment if workers cannot 'rotate to other jobs sectors') (Trickle-Down has trickled up)
6) Only richest have benefited while, adjusted for inflation, middle class, working class, and poor american incomes have stagnated or worsened.