Lesson 3 - Page 4 - Collaborative Learning Activity 3.1 - What effects do multinational corporations have where you live?
MNCs are equally praised and vilified in the global economy. Table 3 summarizes some of the views in favor of and opposed to MNCs.
Table 3. Some arguments for and against multinational corporations.
| FOR: Multinational corporations are key to world economic development because they:
| AGAINST: Multinational corporations increase the gap between rich and poor nations because they:
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| 1. Provide poor societies with employment | 1. Control most of the world's capital and resources, thereby promoting global inequity |
| 2. Import capital to the third world | 2. Disrupt domestic communities when factories close and relocate |
| 3. Introduce new technology and manufacturing techniques to developing nations | 3. Exploit workers and the environment in developing nations |
| 4. Pay wages and taxes | 4. Overwhelm small, locally owned businesses |
| 5. Stimulate local economies with products and services | 5. Increase the dependence of developing nations on wealthy nations |
To conclude this lesson, your team will gather data on
multinational corporations to assess and discuss the effects of MNCs on
people and places in different parts of the world.
Summary
This Lesson examined some of the reasons why
multinational corporations are among the dominant forces promoting
change in the global economy. Your team evaluated the decision of the
SCI corporation to expand its base of production by setting up plants in
several countries. Your team also gathered a variety of data on MNCs
and used this information to illustrate some of the impacts that MNCs
have in the global economy.
In Lesson 4, the final Lesson of this module, your team
will evaluate the distribution of wealth in the global economy, and
decide whether globalization is likely to spread that wealth in a way
that truly benefits people and places who are currently fighting for
economic survival.
Review of Materials Due
Before your team proceeds to the next lesson, each local group should:
- Submit your group's "Role of MNCs" data table to your instructor (Collaborative Learning Activity 3.1).
- Post answers to all "blue box" discussion questions in the Group Discussion Board.
Please begin Lesson 4 on the date assigned by your instructor.
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for the
procedures to follow.