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What are some initiatives that could be put forward to counter the exploitation of developing countries by transnational corporations?

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Kritika Krishnakumar
Kritika KrishnakumarLv10
28 Sep 2019

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What are some common aspects of developing countries with regard to the commodities they trade? Why would they be concerned with commodity price stabilization, and why do some in the developing world believe that current global trade arrangements hinder the industrialization of the developing countries.

Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee. Ryan considers convergence to be true in theory but impractical in the real world. He claims that most low-income developing countries are stuck in a cycle of poverty and so cannot catch up with developed countries. With increased globalization, Emma feels that the developing countries are growing and will converge with higher-income countries eventually. Zoey Smith, a friend of theirs, however thinks that the evidence on convergence is rather unclear. Despite the fact that developing countries are growing much faster than the developed countries, she thinks that they will not be able to catch up with the developed nations in the near future.

Which of the following, if true, would strengthen Ryan's argument that developing countries will not catch up with developed countries?

a. Most developed countries do not have similar resources endowments.

b. Some of the fastest growing developing countries in the world also score well on many social indicators.

c. Credit creation by the formal banking system in most developing countries has been falling or stagnant in the last five years.

d. High population in developing countries, which for decades acted as a drag on growth, now forms a productive workforce.

e. Most developed countries experienced a high degree of inequality in the initial phases of economic growth.

Hello Experts,

Sometimes companies move their corporate headquarters out of their home countries to countries with more favorable tax treatment.

Which duty do you believe is higher, the duty of corporations to pay tax to government or the duty of corporations to pay dividends to shareholders?
Should the concerns of stakeholders other than shareholders be taken into account by corporations?
Why are taxes often more of an issue with corporations than with other business entities?

Thanks a lot!

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