Transnational Corporations Winners and Losers
TNCs <ul><li>Also called multinational corporations (MNCs) </li></ul><ul><li>Have profound effect on lives of individuals ...
TNCs <ul><li>Dying for Growth  argues TNCs are the “dominant institutions of our time” </li></ul><ul><li>“ TNCs total soci...
TNC’s Growing Ascendancy <ul><li>TNCs can threaten relocation, pit nations/regions against one another </li></ul><ul><li>T...
3 Ways to Evaluate TNCs <ul><li>Labor Practices </li></ul><ul><li>Environmental Impact </li></ul><ul><li>Advertising and P...
Labor Practices <ul><li>Example 1 </li></ul><ul><ul><li>The direct labor cost to assemble a $90 pair of sneakers in Indone...
Environmental Impact <ul><li>Example 2 </li></ul><ul><ul><li>Oil companies have extracted over 2 billion barrels of oil fr...
Advertising and Promotion <ul><li>Example 3 </li></ul><ul><ul><li>Infant formula companies advertise heavily in impoverish...
Advertising and Promotion <ul><li>Example 4 </li></ul><ul><ul><li>Tobacco companies heavily target developing nations; 64 ...
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Transnational Corporations

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Transnational Corporations

  1. 1. Transnational Corporations Winners and Losers
  2. 2. TNCs <ul><li>Also called multinational corporations (MNCs) </li></ul><ul><li>Have profound effect on lives of individuals and communities even in the most remote corners of the earth </li></ul>
  3. 3. TNCs <ul><li>Dying for Growth argues TNCs are the “dominant institutions of our time” </li></ul><ul><li>“ TNCs total social costs often far exceed their social benefits” </li></ul><ul><li>TNCs have substantial influence in IMF, WB </li></ul><ul><li>Lobby for deregulation, privatization, liberalization </li></ul>
  4. 4. TNC’s Growing Ascendancy <ul><li>TNCs can threaten relocation, pit nations/regions against one another </li></ul><ul><li>TNCs determine the extent of their own responsibilities toward society </li></ul><ul><li>As the influence of TNCs grow, government’s ability to protect citizens diminishes </li></ul>
  5. 5. 3 Ways to Evaluate TNCs <ul><li>Labor Practices </li></ul><ul><li>Environmental Impact </li></ul><ul><li>Advertising and Promotion </li></ul>
  6. 6. Labor Practices <ul><li>Example 1 </li></ul><ul><ul><li>The direct labor cost to assemble a $90 pair of sneakers in Indonesia is approximately $1.20. The worker’s wages amount to just 1.3% of the retail price. </li></ul></ul><ul><ul><li>If the sneaker company was to raise the worker’s wages by 50%, the labor cost would be $1.80, still only 2% of the retail price of the shoes. </li></ul></ul>
  7. 7. Environmental Impact <ul><li>Example 2 </li></ul><ul><ul><li>Oil companies have extracted over 2 billion barrels of oil from the Amazon and released billions of gallons of toxic wastes into one of the most biodiverse zones on earth </li></ul></ul><ul><ul><li>Results: sick and deformed children, severe rashes, headaches, diarrhea, respiratory ailments, cattle with rotted stomachs, dead plants, animals and fish </li></ul></ul>
  8. 8. Advertising and Promotion <ul><li>Example 3 </li></ul><ul><ul><li>Infant formula companies advertise heavily in impoverished nations. Formula feeding is promoted as sophisticated, convenient and healthier for the baby </li></ul></ul><ul><ul><li>Poor sanitation prevents women from safely preparing bottles. Formula is expensive so mothers dilute with unsafe water </li></ul></ul><ul><ul><li>Bottle fed infants were 40 time more likely to die than breast fed infants; 1.5 million deaths annually </li></ul></ul>
  9. 9. Advertising and Promotion <ul><li>Example 4 </li></ul><ul><ul><li>Tobacco companies heavily target developing nations; 64 percent annual cigarette consumption increase from 1970-1990 </li></ul></ul><ul><ul><li>1/3 of world’s population over 14 smokes </li></ul></ul><ul><ul><li>Of all the people in the world today, 500 million will die of smoking-related diseases; 70% of them in poor countries </li></ul></ul><ul><ul><li>Cigarettes are glamorized as Western culture </li></ul></ul>

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