Page 116 - GLOBAL STRATEGIC MARKETING
P. 116

that LDCs are submissive to the multinational companies, which is not
               always  the  case.  There  is  also  the  fact  that  the  wealth  created  by

               multinational  companies  in  LDCs  is  not  evenly  distributed  among  the
               people, but goes to a specific segment (Paul and Barbato, 1985). Others
               point  out  that  in  countries  with  high  multinational  investment  there  is

               greater  inequality  than  in  those  with  less  multinational  investment
               (Szymanski,  1976;  Bornschier  and  Ballmer-Cao,  1978).  Multinational

               companies  do  provide  jobs,  infrastructure,  railroads,  highways  and
               communications.  This,  however,  can  have  a  negative  impact  upon
               agriculture and native crafts as people start coming to cities looking for

               jobs (Frank, 1969; Paul and Barbato, 1985).

               The main reason for some countries being less developed is that ruthless
               and  corrupt  governments  are  more  interested  in  power  and  personal

               wealth than in the development of their countries. Many such countries are
               torn by civil or other war, limited infrastructure, lack of education, and poor

               health (Harrison et al., 2000). Naturally wealthy countries such as South
               Africa  have  an  abundance  of  wealth-creating  resources  such  as  land,
               minerals and people but the wealth is concentrated and not distributed so

               that it can be shared by everyone in the country. Despite the fact that less
               developed countries would like to hold on to their traditional culture and

               customs, most people who live in cities favour modernism. This results
               from the availability of information and travel, exposure to Western ideas,
               the involvement of multinational companies, and the resulting increase in

               wealth and job opportunities (Paul and Barbato, 1985). The easy modern
               lifestyle of developed countries makes modernisation seem desirable, as

               a traditional lifestyle is difficult to maintain in a modern world. According to
               Todaro (1969) and Watson et al. (2000), people who hope for such change

               will get frustrated if it is very slow, as change will offer them the chance to
               be  exposed  to  modernism  without  being  truly  Western.  Ultimately,  the

               world’s poor countries need to participate fully in international trade and
               the legal economy (Harrison et al., 2000, p. 208).
   111   112   113   114   115   116   117   118   119   120   121