Task2 - Ethics >> Multinational Market Control

"Multinational Market Control"

"The best way for countries to develop is through the process of globalization."

To what extent do you agree?

Continued economic development is an aspiration for all countries in the world. Developing the economy in a sustainable way is a challenge for every world community. Some people contend that globalization is the most effective way to ensure economic growth, while others believe that becoming globalized can have adverse effects.

Economists around the world argue that globalization is the most efficient way to achieve economic growth. They believe that by accessing and opening markets around the world growth of the economy is almost guaranteed. However, developing countries rarely control these markets. The price for commodities produced in third world countries is often determined and controlled by a middle man. Coffee is a great example. Despite the fact that this commodity is produced in many developing countries, the market is controlled by four Western multinational corporations and most coffee is traded on the American stock exchange. Consequently, the market and pricing of commodities such as coffee in a globalized world is controlled by foreigners.

The objective of globalization is to facilitate free trade which should benefit both importers and exporters. Unfortunately, multinationals often force developing countries to compete against each other. To be competitive, these countries then lower wages. As a consequence, the economies and communities of poorer countries are often devastated by globalization.

To conclude, globalization does have its advantages, but the power of the corporation and market middlemen must be curtailed for globalization to truly benefit all countries equally. A form of globalization where the producers of commodities can have greater control of the market price is preferable to the current system.