1. An Unconventional Introduction to Economics By: Diane Coyle Sex, Drugs & Economics

2. “Multinationals: Sweatshop Earth?” By: Kyle Bohland A Synopsis of Chapter 17

3. Authors Opinion  Multinational corporations are easy, but wrong to condemn for labor practices used in developing countries  Attention has forced multinationals to pay much closer attention to working conditions in developing countries  Basis of argument is that companies are becoming more powerful, but not true

4. Authors Opinion  Two aspects in explaining the “demonization” of multinational corporations: Growth of international investment and sales by corporations Impact of a more open world economy on governmental policies

5. Authors Opinion  Investment from one country to another $30 billion in early 1980’s $800 billion in 1999  Proportion of exports in developing country exports to the United States that are exports: 47% in 1990 75% in 1998  Conclusion: companies are transferring production overseas

6. Authors Opinion  Why are companies transferring overseas? Get away with paying very low, exploitation wages?  Labor cost do make up about 2/3 of total cost of manufacturing some low-tech goods Get away from environmental standards?  Companies opt for middle income countries, not low income countries

7. Authors Opinion  Conditions in factories own by multinational companies are almost always better than the local conditions  Many jobs are taken by women and promote independence  Children do not go back to school if cheap labor is not needed Child labor is not desirable, but often better off than their alternative, like prostitution

8. Authors Opinion  Corporations have brought more jobs, money, technology, exports, and prosperity to developing countries  Often much better than what a corrupt government could achieve

9. Conclusion  Globalization has positive outcomes and negative  Governments and corporations have both gained and lost power in some opportunities  No clear conclusion to whether net outcome is positive and negative  Can only work for the future to improve on the past and present