GEOG 322W Lecture Notes - Lake Superior, Sulfur Dioxide, Cyanobacteria
26 Nov 2012
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Document Summary
Countries rich in natural resources specialize in resources and get stuck. Import knowledge of the staple is a large expense. Not making own decisions, some one else making decisions from great distance- multi national corporations- mnc"s. Money, power concentrated where decisions are made- location of decision maker- us city for a resource in pnom penh, thailand. Toronto and calgary are other decision making centers. Ownership structure and which owners have control. Administrative pricing, where subsidiary company sells to bigger company- convenient non market transaction done by contract. Enclaves set up to link outsides more than inside. Corporations run major pieces of the country, by which can control country, such as by establishing shah"s- who took commands eg. banana republic- guatemala and honduras. Dutch disease- traps when resource price rises- eg . oil regional overdependence on a single industry. High returns and high wages in one sector draw capital and labor from other sectors.
