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FOR - Neither globalization, nor the multinational corporations do anything to improve the economic growth and development prospects

of the Caribbean region. Before I begin, I would first like to define the key terms of this debate – namely, globalization and Multinational Corporations. The Oxford University Press (2013) clearly defines globalization as ―the process by which businesses or other organizations develop international influence or start operating on an international scale.‖ On the other hand, Multinational Corporation (MNC) is plainly defined by WebFinance (2013) as ―an enterprise operating in several countries but managed from one (home) country.‖ Globalization is not new to the world and certainly not to the Caribbean Region. Recorded history reveals that for over a century there has been the international trading of commodities by the Region. Interestingly we discover that this trade began with Grenada, who exported nearly 100,000 pounds of spice in 1881 (Groome, n.d). However, the concept of Multinational Corporations is fairly new to the region and was only recently introduced in the twentieth century. We need to look at globalization and Multinational Corporation from the standpoint of both economic growth and development with the goal of ascertaining whether they have achieved this. The crux of our case is that globalization and multinational corporations do little to improve the economic growth and development prospects of the Caribbean Region. ―Where globalization means, as it so often does, that the rich and powerful now have new means to further enrich and empower themselves at the cost of the poorer and weaker, we have a responsibility to protest in the name of universal freedom‖, a quote from Nelson Mandela. The Caribbean region has long been labeled and seen by the international community as comprising of predominantly developing countries with the exception of Barbados, Jamaica, the Bahamas, and Trinidad and Tobago. The region has had a comparative advantage in cheap labor and natural resource endowments, which allowed it to compete globally; however this has been lost due to the ever-increasing innovations by developed countries which have allowed them and their products to be even more competitive through a more knowledge- based economy (Morris, n.d). This leads to the point that globalization has only created an avenue for larger, and more developed countries to exploit the smaller countries in the region. An example would be the preferential trade agreement for the former colonies of the European Union that favored banana growers; however, this agreement restricted Dole, Chiquita and Del Monte – three major banana producing U.S companies which ―controlled two thirds of the world banana market‖ (Harper, n.d). These three companies controlled 42% of the European market compared to 8% by the Caribbean (Harper, n.d). Chiquita and Dole also contributed to the US political parties. In 1996 the US government protested to the World Trade Organization (WTO) on behalf of these companies. It should be noted that the US does not export banana. The removal of the preferential trade agreement caused the banana market in the Caribbean to decline steadily, as

This was considered an example of ―quid pro quo [this for that] motivated trade policies‖ in other words the developed country operating with its own interests in mind at the expense of developing countries (Harper. Small businesses. Globalization also creates inequality in trade.they are limited by physical size and the increasing cost of production. affecting countries like Japan and even the Caribbean Region. in this case the countries of the Caribbean Region. When mature industries move to the Caribbean and become mechanized. particularly in that they stimulate economic growth by providing employment. In the Caribbean not only are most governments unable to afford subsidizing farmers. however. Developed countries have farmers who receive subsidiaries from them. The recent 2008-09 financial crisis in the United States has been one of the most recent examples of how financial failure of one country can spread throughout the globe. Small businesses are essential to the Region. In countries like Dominica and St. Lucia which depended on banana exports. the removal of the preferential trade agreement was detrimental to the economy. upon closer inspection. including the Caribbean Region.d). and develop and introduce innovative products. Caribbean countries that are considered poor such as Haiti and Dominica are usually forced to accept globalization. The introduction of foreign investment appears to be good for our Caribbean countries. Ultimately. in most cases allowing foreign investors from more developed countries to take advantage of lower wage rates and their natural resources. The financial crisis in the Caribbean resulted in the number of tourist arrivals declining within nine months which caused countries’ GDP to decline. and as such it can be seen as a negative effect of globalization on economic growth. Multinational Corporations negatively affect small businesses in the region primarily due to the fact that they tend to dominate the market. . future growth for these small businesses is stifled by these big corporations and they are rendered unable to contribute to the countries development. they inevitably result in job losses. There was also rising unemployment and a reduction in government revenue (Caribbean Actuarial Association. or introduce automation. Taking a look at the presence of Multinational Corporations that exist as a result of globalization. it can be said that they do little to improve the economic prospects of the host countries.S financial crisis had a domino effect. usually ran by local entrepreneurs. This effect cannot be avoided as countries are in essence tied together. One may look at this as a good thing. The link that globalization creates can be unfavorable to all countries. 2013). are unable to compete with these big corporations that are able to give ―high volume deals and discounts‖ (Stanley. 2009). one will discover this is not true in all aspects. Globalization links all the world’s economies together through trade. n. However. profits from these investors are returned to their home country and do not contribute to our economic growth or development. as such developing countries cannot compete. the islands are also limited by size and farmable land. The U. It should also be noted that the primary exports of the developing countries in the Caribbean are typically agricultural products.

J.tourism and Retrieved from http://oxforddictionaries. Retrieved from http://www. References: Caribbean Actuarial (n. (n.It is claimed that MNC’s create employment in host bbean_Dennis_Morrison. Negative impacts of multinational corporations. Dominica for example is a country that has provided this cheap labor to an MNC – Clear Habour.d). Retrieved from http://www.pdf Groome.wgig.d). Retrieved from http://daacademy. December 4).html Stanley.grenadahistory. Impact of the financial crisis in the Caribbean. A. Clear Habour has no strong ties to Dominica and may leave at anytime creating a great unemployment problem or they may chose to eliminate jobs (as they have done before) to increase their profits.html Oxford University Press. Globalization and Multinational Corporations only benefit the well developed countries while its disadvantages fall heavily on the shoulders of less developed parts of the world like the Caribbean Region. Retrieved from (n.caa. R. Retrieved from http://www. At the moment people are employed food insecurity and lack of welfare as a result of the negative effects of globalization and Multinational Corporations. A.d).html . income inequality. but have we looked at the bigger picture? Are these employment opportunities really as grand as we perceive them? The truth is the multinational corporations are only interested in cheap labor and creating profit from this labor. (2009. . Caribbean countries could face poverty.htm Harper. J. (2013). Challenges for the Caribbean. however. The nutmeg story. D. Globalization. Developed nations exploit Caribbean economies. economical stagnancy or decline. This depicts how a MNC is only exploiting its host country’s resources in order to make a financial (2013).

caa. as well as a lack of concern for the Profit sent back to home country Globalization can lead to financial problems. http://www.brainyquote. Retrieved from http://www. Multinational corporations are accused of social injustice. 2009) Read more at http://www. unfair working conditions (including slave labor wages and poor living and working conditions). mismanagement of natural resources. Multinational corporations which were previously restricted to commercial activities are increasingly influencing political .WebFinance.html#LG7e5As6gch5wct8.pdf (Caribbean Actuarial Association. 3.businessdictionary. (2013). Multinational corporation (MNC). and ecological damage. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization. The development of orchards and plantations by multinational companies in the poorer countries of the world often means reduced land available for production of local food

9% rise in 2012 (The http://www. o Companies face much greater 4.staff. this . Definitions Theme – the crux of our case is that globalization and multinational corporations do little to improve the economic growth and development prospects of the Caribbean region Label –explain—examples—tie back http://www.businessdictionary. and showed a 0. It is true that GDP in the Caribbean Region has been growing.html stanley o 2. http://www.caricom. However.pdf Read more: http://www.php?id=44352 Disadvantages of Globalization: Developed countries can stifle development of undeveloped and under-developed countries.Globalization. o Economic depression in one country can trigger adverse reaction across the globe. 5. o It can increase spread of communicable . This can put smaller companies.html#ixzz2XpuOXlY7 http://www.html http://www.caribbean conserva http://da-academy.mightystudents.pdf http://oxforddictionaries. 2013). at a disadvantage as they do not have resources to compete at global scale.14907 --. 3.