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| Authored by: David Mandelzys on Wednesday, April 06 2005 @ 08:56 AM CDT |
But how fast will the company exit the country?
When will they move to a cheaper one?
What concessions will a country have to be willing to make to keep a company there?
What if the company is a monopolist employer and no unions can be formed to match their barganing power?
And the kicker....
What if supply is way above demand and immobile (because of borders)?
Think about it in terms of development, does a multinational locating in a country seeking the lowest price for labour and operations contribute to development when that multinational has the power to pick up and leave as soon as they can negotiate (force) a cheaper deal?
Also remember that just because the majority doesnt benefit, doesn't mean some don't, there is incentive for a few to invite this type of production into the country at the expense of the majority, and not all developing countries are democratic (many many (most?) aren't).[ Parent ]
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