Globalization?

[calbert at tiac.net]

Gabe:

> Kind of late in the game, but two comments to make.  MNC's employing
> labor in  third world usually bring their own managemnt and locals do
> not learn the valuable skills the blind here seem to think that they
> do. 

The blind????????Try this on......

A shoe factory in China can choose to make its boxes by hand or 
with machine.........Five years later the following holds:

In the former case, those employed for this purpose will have spent 
five years applying glue with rags, and folding boxes by hand...

In the latter, those employed have been exposed to equipment 
utilizing mechanical, hydraulic and in some cases pneumatic 
systems.....They have spent such time adding to their knowledge, 
while avoiding carpal tunnel syndrome.....

MNCs are NOT free to bring whatever management they choose - 
most countries have strict policies regarding the immigration of 
labor, and its employment within their borders....

It is also short sighted strategically to deny locals such positions:

A) they bring an understanding of local markets, customs, patterns 
which are critically important in developing domestic marketing 
plans....

B) the development of a local management "class" is essential in the 
evolution of any economy, it is a traditional access route to middle 
class and beyond - 

C) locals with disposable incomes are customers.......  

 As well, once in, large corporations do not bring much capital.

Oh, really? What do you think sustains Boeing's international sales - 
local capital? Try Export Import Bank and other such agencies....
 
> Having these nations by the balls, they take LOCAL capital at
> substantially discunted rates and are able to do so,

This is hokum......What they may recieve is tax considerations.....
They get their capital in the international capital markets.......Few 
local capital markets are of sufficient scale to accomodate large 
investment such as communications and power infrastructures....

 because 20,000
> jobs are at stake and thailand knows that cambodia wouldn't mind
> having them.

Just as Ohio and Michigan will compete to make themselves 
attractive to potential employers......Just as you have the right, nay 
the obligation, to find the best price for your Birkenstocks - so too 
have those who seek capital......


love,
cfa