Are multinationals evil?
stevehaddock gave this response on 8/24/2000: Less developed countries (LDCs) need money, and multinationals have plenty of it that they are willing to invest. However, having a multinational in your backyard can be a mixed blessing. While many companies do ethical business in LDCs, there are several unethical business practices that have meant the multinational is causing more problems than they are worth in new jobs and capital. – Many multinationals do business in LDCs to get around strict environmental or labour laws in their own country. As such, the multinational replaces low paying jobs in a traditional economy with low paying jobs in a modern economy. This causes a lot of displacement as people flock away from the rural areas to the new industrial areas. However, sufficient housing and hygienic facilities (water & sewage) often aren’t in place. Moreover, when the multinational moves out, the people who used to work at the factory are often made homeless. – While multinationals
