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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

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

It is claimed that MNCs create employment in host countries, 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. Dominica for example is a country that has provided this cheap labor to an MNC Clear Habour. At the moment people are employed there; however, 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. This depicts how a MNC is only exploiting its host countrys resources in order to make a financial profit. . Caribbean countries could face poverty, economical stagnancy or decline, income inequality, food insecurity and lack of welfare as a result of the negative effects of globalization and Multinational Corporations. 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.

References: Caribbean Actuarial Association. (2009, December 4). Impact of the financial crisis in the Caribbean- tourism and bauxite. Retrieved from bbean_Dennis_Morrison.pdf Groome, J. R. (n.d). The nutmeg story. Retrieved from Harper, A. (n.d). Developed nations exploit Caribbean economies. Retrieved from Morris, J. A. (n.d). Challenges for the Caribbean. Retrieved from Stanley, D. (2013). Negative impacts of multinational corporations. Retrieved from Oxford University Press. (2013). Globalization. Retrieved from

WebFinance. (2013). Multinational corporation (MNC). Retrieved from

Profit sent back to home country

Globalization can lead to financial problems.

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 supplies.
Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages and poor living and working conditions), as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage. 3. Multinational corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization. nis_Morrison.pdf (Caribbean Actuarial Association, 2009) Read more at morris Read more: - caribbean conserva Disadvantages of Globalization: Developed countries can stifle development of undeveloped and under-developed countries. o Economic depression in one country can trigger adverse reaction across the globe. o It can increase spread of communicable diseases. o Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale. 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 explainexamplestie back

2. 3. 4. 5. stanley --- gdp

It is true that GDP in the Caribbean Region has been growing, and showed a 0.9% rise in 2012 (The Gleaner, 2013). However, this