POLS 2080 Lecture Notes - Lecture 18: Foreign Direct Investment, Corporate Social Responsibility, Class Conflict
27 Nov 2015
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Document Summary
Multinational corporations (mnc) engage in foreign direct investment (fdi) and control value-adding activities in 1+ countries. In western world (and more so in developing world) certain corporations play huge role. A lot more money is flowing into these regions presently. Foreign direct investments outstrips official development systems but a lot. A lot more money transfers across borders being transferred by firms, than all the money regarding bilateral and multilateral aid. Says the reason for mnc to expand is to expand profits. Theorists talk about new vision of labour not as much a class struggle, more a global struggle between low and high-wage countries. Critical theorists say a better approach would be not to let free market go, you should include regulations and build up socialist economy, let state take over. Alternative strategy: state-owned firms involving states, multinations and local firms. Most firms are not a big fan of government regulation.
