Issue: Causes richer nations to become richer, poor nations to become

poorer
Cause:
Effect:

Issue: Demolishes native cultures

Cause:
Effect:
Issue: Causes health and environmental damage in underdeveloped nations
Cause:
MNC Perspective: All businesses especially multinational companies have a simple aim of
earning profits. In an attempt to add value to the business, many businesses retain their
selling price but reduce their cost price to increase their profits. As land and labour are more
cheap in underdeveloped nations, these companies are inclined to set up their factories over
there, thus reducing their cost price.
National Perspective: Underdeveloped nations have deteriorating economies and are
desperate to receive international help to revive their economy. Therefore, underdeveloped
nations seek offers from multinational companies that are willing to offer immediate jobs. In
return, local governments are willing to eliminate taxes and other added costs for the
company, making the company want to operate in the country for longer. Businesses freely
take advantage of these exceptions made by the government and carry out harmful
production processes that involve the use of hazardous chemical and gasses.
Effect:
Global Perspective: As concern about the environment and health has increased in wealthy
nations, many polluting activities have been relocated to undeveloped countries where
environmental and health standards are more relaxed. Local governments are uninformed of
the health and environmental implications these polluting processes can have. Therefore,
multinational corporations as well as the local governments allow the business to run with
little care for the environment or the labourers’ health.
Local Perspective: Due to the poor conditions in which the labourers work, they are prone to
catching fatal diseases by being exposed to hazardous gasses and chemicals. Poor countries
are also less able to monitor and treat the effects of any pollution, which can result in their
populations suffering serious health damage, or facing serious environmental repercussions.
For example, in 1984 in Bhopal, poor standards in a U.S owned Union Carbide chemical factory
lead to the accidental release of a poisonous gas, killing more than 5,000 labourers and locals.
In 2010, an explosion on the Deepwater Horizon oil rig (owned by British Petroleum) located
in the Gulf of Mexico, approximately 41 miles off the coast of Louisiana, resulted in the largest
oil spill in the world. Without any opposing force, oil began to discharge into the gulf. The
volume of oil escaping the damaged well was estimated by British Petroleum to be about
1,000 barrels per day, massacring sea life.