Do Multinational Corporations Exploit The Developing World?

How Multinationals to Exploit 3rd adult male Countriesthrough GlobalizationIntroductionDeemed as the international consolidation of national economies marked by free trade , unlike direct investments that initiated capital and technology flows and migration of quite a little across boundaries worldwideisation whose dynamics are pre-established through the World Trade arrangement , can also be viewed peculiarly in the view of third world countries , as a channel by which multinational corporations mostly coming the North to restore and modify their simoleonsability , following a history of immense stagnancy evidenced by a declining growth rate . It must be noted that in the 1970s and 80 s , the nervous impulse for capitalistic economies had been reduced by 60 percent (Thurow . For subject , the rate of profit among private companies in the US dropped by 40 .9 percent in 1965 (Brenner ) According the Brenner , stagnation or depression can be attributed to the decline in profit as the cost of production especially (raw materials , and /or sweat costs ) increases faster than merchandise selects . When the accumulation of profit languishes , the concern and stability of non competitive capitalistic companies becomes difficult because they cannot invest on technology to lower production costs , engage in research and development to innovate mod products and establish new factories to meet increases in demand . This phenomenon naturally occurred to capitalist economies (Cherry . approach with such crisis profitability and despite contrary to capitalistic principles , authorities intervened through state policies promoting anti-inflation , progressive taxation for wealth redistribution , perseverance deregulation , initiation of corporate mergers , among others .

The phenomenon called internationalization through the World Trade Organization institutionalized this crisis profitability management tactic as it calls for free trade that extended the lowering of taxes and task in other countries dubbed to make economic forces conducive for global market expansion for multinational corporationsKeynesian TheoryNamed after the father of newfangled economics , John Maynard Keynes , the Keynesian theory highlighted the interdependence of consumers and immensity of consumer expense in stimulating and maintaining economic productivity . then , depressions occur because of a liquidity trap in which people hoard their money despite government intervention to exsert money supply (Coddington ) Weak or sluggish consumer disbursement in turn results from the loss of confidence in the preservation due to natural calamities , pessimism or perceived stock market crash and the widening gap between the rich and the scurvy in which the poor is unable to afford what the rich (capitalists ) produces in surplus . In which case , government should initiate spending . On the stark side of it the Keynesian paradigm that proposed consumer spending and expanding money supply to produce sufficient aggregate demand resulting to greater productivity established the US centered global trading system in which all countries rely on exporting to the Western market i .e . US because of the triumph of the dollar currency . Exporting third world countries require dollars for importation of essential commodities such as oil This on the other hand resulted to huge trade and currency imbalances that especially afflict third world countries , who are unable to bring forth adequate exports to match their required...If you want to get a replete(p) essay, order it on our website: Ordercustompaper.com

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