Transnationals

Transnationals

1. Intergovernmental organisations (IGOs) - legal, political

   • UN - 1949 - end of WW2, allowing countries to come together
   • EU - trade blocks, reduce borders in Europe
     • 1956 - after WW2 - initially a trading block (no taxes or tariffs)
     • Free movement of money and people - Schengen Movement - no border controls
     • Shared currency - costs money to change currency when trading = easier trade

2. Economic

   • World Trade Organisation - organise world trade and aims to recede barriers - flow freely and provide legal framework
     • Criticised for doing bidding of TNC's and not letting LEDC's protect infant industries
   • IMF - International Monetry Fund - oversee world financial system and stabilise exchange rates, renegotiates debt on behalf of nations - BUT criticised for imposing conditions (privatisation and cutting government spending)
   • World Bank - deals with reconstruction projects in LEDC's, aims to reduce poverty by loans BUT has loaned responsibly and increased dependency

3. Cardoso - class alliance between LEDC ruling elites and invaders - under control of agencies like East India Company - political and military power - exploiting the poor - MARXISM - DEPENDENCY THEORY

4. Soros - collapse of communism and rise in market fundamentalism (TNC's can flourish - 2007 crash -banks can do what they wanted)- free market, pursuit of profit at expense of everything else - NEO-LIBERALS

5. Bakan - corporate pyschopathy - lacking empathy - TNCs care about themselves - driven by profit - COUNTER INDUSTRIAL - has not helped poor or environment

6. Altvater - dependant on TNC's (SHELL - 90% of Nigeria's foreign income) - operate nationally - false advertising (Nestle Milk Formula scandal) - usually subcontracted - Nike - deny responsibility - no clean up

7. Amin - NEOMARXIST + DEPENDENCY - LEDCs forced to sell labour at cheap price - profit for metropolis - exploit workers - NIKE -

8. Environments - TNCs extract natural resources from satellite (No sustainability) - moving when supplies are exhausted - 'slash + burn agriculture' (KFC) - large amounts of land converted to "factory farming" - BHOPAL 1984

9. Eskeland + Harrison - COUNTER INDUSTRIAL - TNC's can bring more efficient technology

10. Markets - Dependency theory - false advertising (Nestle Milk Formula) - campaigns in Africa

11. Advantages

    • Exports bring in needed foreign capital
    • Infrastructure
    • Local workforce - previous farming jobs not guaranteed
    • Machinery and advanced tech
    • Increased GNP demand for goods - collect more taxes - create infrastructure

12. Disadvantages

    • Raw materials exported not manufactured - increased debt
    • Much of profit goes overseas
    • Long hours and low pay
    • Machinery creates less jobs for workers
      • Commercial goods created for MEDCs and not local supply

13. Dependency - LEDC dependant on TNCs - make alliance with ruling elites to exploit the poor

    • Counter Industrial - TNCs affect environment - slash and burn agriculture however agree that it can bring efficient technology
      • Modernisation - favour TNCs - wealth will eventually trickle down to poor - provide infrastrucutre for conditions for take off
        • Neo-liberals - favour free trade and capitalism (free market) - favour TNCs - provide jobs and income - stable and guaranteed