Reasons of Businesses Conducting Operations in Third World Countries

After analyzing the forestry problem described earlier, the problems are clearly linked domestic government policy and not only the giant multinational corporations as Ellwood has posited. The incentive for corporations to conduct cross-border trade is not the unperturbed environmental laws, it is the comparative advantage they would gain from cheap labor and resources. LeGrain advances the argument that approximately 80% of polluting industries are in industrial nations, such as America where Greenpeace affirms that oil corporations receive billions of dollars in subsidies for their production purposes which does the most environmental damage that affects the rest of the world with it. Initiatives should be started to reduce the Global South’s dependency on the Global North because it is their high debt-GDP ratios which keep the prices of natural resources (often tied to their currency) low enabling large consumption. There is a clear incentive for the international community to reduce the Global South’s dependency because it is widely agreed that as the GDP per capita of a nation increases the residents are able to afford environmental remediation products and

Contrastively, globalization itself has great damage to the environment. Due to developed countries going into developing countries to exploit their resources, the natural resources is depleting at a rapid speed, yet we are still not doing enough to stop it. As there are strict laws regarding the environment in developed countries, these companies turn their eyes onto developing countries whose environmental laws are more relaxed in comparison. As these developing countries also want to earn revenue and income that these companies bring, they open the door to them, but destroying Mother Earth at the same time.

Explain the difference between civil law and common law and why it is important when evaluating whether or not a person or company should engage in doing business in emerging markets? (Answer this question in at least 4 sentences).

Tropical countries such as India, endowed with rich biodiversity and natural resources. People consider environment as a part of their lives. Therefore, the natural environment should not be affected by the business activities. In India, natural resources such as water considered sacred. Also there are many powerful NGOs act upon environmental issues. For example, Coca Cola had to face many hardships in India because of the environmental issues. Therefore, it is very important to be careful with environment in the said country.

The problem of pollution comes with the ever expanding human population. With this growing population our demand for products also increases. We live in a consumer society, especially in the United States, and making huge quantities of products generates a large amount of pollution and waste. American citizens love to buy, we represent only 5% of the global population but we use 25% of the world's resources. The unfortunate part is that all the resources we use to make products end up in some landfill somewhere because a huge amount of Americans don't understand the importance of recycling and reducing consumption of products. American citizens throw away 40% of the food they purchase. That number is ridiculous, especially since so many Americans

To cut costs, companies relocate their factories to areas with minimal pollution regulations to produce more with lower prices. Without tariffs, “trade without borders” become more much accessible and gratifying multibillion dollar corporations. Free trade agreements such as NAFTA and WTO do not consider the ecosystem and thus, endanger biodiversity and vital natural resources. Globalexchange.org states, the creation of free trade agreements imperil “global diversity by accelerating the spread of genetically engineered crops, … and erodes the public’s ability to protect our planet for future generations.” All in all, the absence of environmental regulations in free trade agreements severely damage the biosphere.

Developing countries tend to have “the most fragile environments” (Baker 197) which is due to the flow of resources dictated by the core. The core, taking advantage of the developmental level developing countries are on, exploit their lack of laws restraining harm to the environment, setting up factories causing even more environmental damage. Thus when comparing the environmental status of a developed country to a developing country there are major differences. These differences are the interaction of the people with the environment, in terms of needs, and the number of factories profiteering from the use and exploitation of natural resources. When this difference is identified then it is easier to assess not only the source but also to create laws prohibiting this exploitation and constructing programs to reverse environmental damages to specific circumstances, helping developing countries to move forward on the developmental scale instead of backwards. If this is taken into account then why is the source causing environmental damage, the core, not stopped? This is due to the dominant ideology stating that with infinite economic growth, eventually the sustainability of the environment will be achieved. The developing countries reinforces this by inviting and encouraging organizations to base their factories in their country which has immediate results, creating a smoke screen

According to Brodwin (2015) in his article “Unsustainable America” discuss the consumers are very important to improve the environmental sustainability. In addition the consumer’s ability to affect sustainability. Therefore, consumers prefer to choose their power from environmental sustainability. They are two country tray to improve the environmental sustainability which are India and China. On the other side, one country doesn’t improve the environmental sustainability which is America.

The reasons why India continues to draw in the waste of developed countries are not difficult to find. High profit margins, owing to poor environmental regulation is a major factor. In developed countries, it is extremely expensive to get rid of such waste. Most lead smelters in the U.S. have been shut down, and those that remain can spend more than $10 million per year on pollution control alone.

Third world countries have been suffering for a long period of time throughout history from the

The dictionary states that a third world country is a developing nation in the midst of Africa, Asia, or also Latin America. The country of Ethiopia is described as a third world country due to its great poverty rate. This country has a peculiar land layout and is ranked 16th in the world with its population. Ethiopia is a country with interesting cultural ways and rich with historic events. Unfortunately some factors brought the Ethiopian country to become one of the world's poorest countries. History of this great nation dates as far back as the 4th century C.E and as time progressed many interesting facts have

Additionally, many environmentalists argue that consumerism has severe affects on the environment and blame it for many issues society is currently facing. Some major concerns about consumerism are that it can cause pollution, land contamination, and forest degradation. The production and waste of products used in consumption is related to pollution. Industrial waste and automobiles are primary examples, as well as waste from industrial agriculture and individual consumer waste. A main issue that exists is the exporting of pollution and waste from developed countries to poorer countries, a process which is done due to the fact that poorer countries have lower standards or exempt from the emission reduction targets (Shah, 2010). Similarly, according to the Chief economist for the World Bank Larry Summers the World Bank should be encouraging more migration of dirty industries to less developed countries, ironically the economic logic behind dumping a load of toxic waste in the lowest wage country is perfect, however there are many countries in Africa that are vastly under-polluted. Their air quality is probably vastly inefficiently low compared to city like, Los Angeles or Mexico City (Robbins, 1999). According to Larry Summers,

Lack of development in countries in the so-called `Third World' has many political and economical reasons. Historians explain the inadequacy of developing countries with the early imperialism and the resulting colonization of the South. Exploitation of mineral resources, deforestation, slavery, and the adaptation of foreign policies shaped the picture of today's suffering and struggling civilizations and natural rich continents. The omission of concessions and equal negotiations between dependency and supremacy give rise to the contrast of enormous resources and immense poverty in developing countries is. In the last years the outcry of justice and the emancipation of the Third World became louder throughout developing and industrialized

A multinational corporation (MNC) is a corporation that operating in two or more countries, known as host countries but managed from one country, known as home country. Multinational Corporation is also known as international corporation (Wikipedia, 2011). Besides that, MNC can be defined as a corporation that derives revenues from operations in countries other than home country (BusinessDictionary, 2011).

Turnbull (1986) recommend that a major weakness is a one-sided focus on the activities of the manufacturer together, that negotiate in the flow of goods and services to the customer