Lecture Notes 4.29.10

Lecture Notes 4.29.10 - Pols 231 Lecture notes 4.29.10 The...

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Pols 231 Lecture notes 4.29.10 The Debate Over Multinational Corporations Positive Assessment (Modernization Theorists) Employment Infrastructure Investment Training Business wants training, harbors education Technology Transfer Diffuses throughout the country Negative Assessment (Dependency Theorists) Impact on local infant industry Cross-subsidization – Use profits from one part of the world to subsizide sellings its goods at low costs in another part of the world until it drives local business out of the market Interlocking Directorates – Same people are on the boards of directors of a corporation and a bank Impact on labor Multiple sourcing – Local labor can be replaced by products from elsewhere “Runaway” shop – Move the factory to somewhere else which will work for current conditions. Manipulate host government's e.g., Guatemala 1954; → United Fruit Company; New President; Land Reform; :( ; Commies in Guatemala!!; Soviet Destruction of Monroe Doctrine; CIA sponsors
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Lecture Notes 4.29.10 - Pols 231 Lecture notes 4.29.10 The...

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