“The skeptical reader may well say that this theory is all a little too neat, and that reality is not always like that. So, let us set theory aside for the moment and ask whether or not multinational companies really do make poor countries demonstrably wealthier. When we repair to the data, we find consistently that they do. In Fighting the Wrong Enemy, Columbia University economist Edward Graham reports that, on average, total workers’ compensation offered by U.S.-owned manufacturing companies is 80 percent higher than the average compensation offered by domestically-owned manufacturing companies in middle-income developing countries; in low-income developing countries this figure is even higher, at fully 100 percent more than the average for domestically-owned manufacturing”. — Matt McIntosh, writing in Tech Central Station on the benefits of free trade
Jul5th2006


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