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13 April, 06:32

Conflict theorists contend that multinational corporations are attracted to developing countries because developing countries

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  1. 13 April, 08:33
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    Discourage strong trade unions, create favorable "climate for investment", large cheap pool of labor.

    Explanation:

    Conflict theorists, who holds the belief as set out by Karl Marx, contend that multinational corporations are attracted to developing countries because often times:

    1. developing countries discourage strong trade unions, which will make the multinational to exploit the labour laws in those countries

    2. create favorable "climate for investment", this implies that, multinational company get cheaper materials, tax, lower competition and lower cost or free access to operate.

    3. large cheap pool of labor, this means that, in developing countries, with high rates of unemployment, there is availability of cheap labour in abundance.
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