Question
Do U.S. Multinationals exploit foreign workers? Pg 319 (17th edition) COLLAPSE In this short mini-case, the author presents the dilemma of investing or not investing
Do U.S. Multinationals exploit foreign workers? Pg 319 (17th edition)
COLLAPSE
In this short mini-case, the author presents the dilemma of investing or not investing in developing countries by foreign firms due to the debate that has been taking place globally on the role of foreign direct investment in developing countries.After reading the case carefully, discuss the following questions (you may include the experience of your company with regard to those issues,if you have been exposed to those while working with your current or past companies.If you don't or didn't work in the past for such companies, you may include your views based on your research on the outlined points of view in order to support to make arguments).
- Should firms when investing in developing countries be guided purely by profit-making objectives or do they need to be socially conscious about "exploitation".Discuss also the term exploitation; in other words, a/g to you, how do you delineate the concept of exploitation from providing jobs based on labor market in any region/country?
- Assuming that we admit that there is exploitation of workers by foreign firms operating in poor developing countries, are developing countries better off or worse in the absence of foreign direct investment, whose motive is taking advantage of the low wage and poverty of developing countries?
- How would you resolve this dilemma which is known for dividing business leaders, politicians and academics?
Additional Sources:
Moran, T., NetLibrary, Inc, & Ebrary, Inc. (2002).Beyond sweatshops foreign direct investment and globalization in developing countries. Washington, D.C.: Brookings Institution Press.
Coniglio, Nicola D., Prota, Francesco, and Seric, Adnan. (2015). Foreign direct investment, employment and wages in subsaharan Africa. 27 Journal of International Development 1243-1266.
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