Essay on Global Economy And The Environment

946 Words 4 Pages
Global Economy and the Environment

As the global economy gets integrated, national or local corporations
will gradually transform in to a multinational corporation (MNC). When this
type of development occurs, the host countries are usually the ones that become
the immediate stake holders. This is because when a MNC sets its foot into a
host country, there are economic, political, social and environmental impacts
that result from their corporate actions. In many cases, it is certainly
possible that it can end up in a win-win situation, if the host country and the
MNCUs both work mutually. However there have been unfortunate examples, where
this has not been the case.
In general, international agreements have its advantages, due to
…show more content…
Another important aspect is the fact that in any international trade
agreement, a MNC is most likely going to shift their production to a lesser
developed country. This is because LDCUs are a good target for cheap labor and
low start-up costs. In Robert PastorUs essay, he mentions the term
maquiladoras; Rcheaper labor that allows them (Mexicans) to assemble parts,
import from the U.S. and then reexport the assembled productsS. In places such
as the maquiladoras, safety standards are not as rigid and this puts the local
workers in a serious health risk. The Rblack lungS case is an example where
miners in Latin America contracted respiratory diseases from working at unsafely
regulated coal mines. Since it was in a lesser developed country, occupational
health standards were lower than the usual. The Union Carbide incident from
Bhopal, India is another example, where the explosion took place due to lack of
safety and precautionary measures. Many experts have commented that the Union
Carbide incident could have been completely avoided, if the plant was located
elsewhere, in a more developed country, where they have more strict standards.
So there is a need for universal standard on these types of issues. Unless this
is achieved, the LDCUs would be placed in a vulnerable situations as more and