Scenario: As Junior Minister in the Ministry of International Business, you have

Question

Scenario: As Junior Minister in the Ministry of International Business, you have been asked to present arguments about the benefits/challenges surrounding MNCs in the Caribbean and similar developing economies. Develop arguments FOR OR AGAINST the following moot: Being cognisant of the distinction between risk management strategies and risk mitigation, one can say that the risks to the host country and to the MNC/investing country are minimal.

Notes

1. Draw from all of the information presented during the course to make your case as formidable as possible.

2. It is possible to present arguments both for and against, to deduce the net (positive or negative) effect.

3. This thesis is a useful reference: Persaud, T., (1976), Conflicts between Multinational Corporations and Less Developed Countries: The Case of Bauxite Mining in the Caribbean with Special Reference to Guyana a. Do not try to read the thesis exhaustively; it is simply a tool which contains useful pointers.

Explanation / Answer

Benefits of MNC's in the Carribbean:

The risk to the Carribean islands as a result of arrival of the MNC's are minimal. In fact it is the island nations that stand to gain from the benefits mentioned above. There are certain risks such as exploitation of resources and large scale industrialization affecting agriculture and tourism which are primary sectors of economic growth in the country. With proper planning, policy and regulations industrialization of the Carribbean will provide economic growth and infrastructure to sustain a long term growth and development.

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