BU491 Lecture Notes - Lecture 8: Emerging Markets, Sweatshop, Living Wage
Globalization had been widely viewed as a powerful engine of economic development, spreading the benefits of free market capitalism around the world. Fewer developing countries had seen the benefits of this tidal wave of trade and investment. The growing gap between the rich and poor offered clear evidence that globalization was just the latest term for their continued exploitation by the developed world through the agency of mnes. Greatest poverty reduction program = china moving out of poverty since 1970s. Investment of billion by 300,000 approved foreign enterprises in 30 years following announcement of china"s open door policy in 1979. Immediate challenge for mnes = deciding how to respond to the growing public resistance to the globalization forces that drove their growth and expansion during the previous half century. Responding to developing world needs: four mne positions: the exploitative mne: taking advantage of disadvantage.