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  • Essay / Impact of multinational corporations on the smallest...

    (Multinational corporations of multinational corporations) can operate in a "geocentric" manner, planning the location of their production and the pattern of their investments according to the balance benefits throughout the global capitalist economy. . For example, in the short term, these geocentric multinationals have the ability to increase the level of production in one country at the expense of another and, in the longer term, they could even shift the total balance of their production between countries . of work” (NIDL) developed by Frobel (1980). The NIDL draws attention to the impact of multinationals, but its specific aim is to highlight the development of a global market in which manufacturing production can be fragmented and located in any industrialized or less developed part of the world. world, depending on where production is located. The most profitable combination of labor and capital can be obtained. Although this analysis is rich in contemporary empirical detail, it also presents a historical contrast between (i) a “classic” international division of labor, in which a minority of industrialized countries produced manufactured goods. and less developed countries have been integrated into the global economy only as producers of food and raw materials, and (ii) NIDL, in which the traditional “bisection” of the global economy is undermined. What NIDL entails is the closure of certain types of businesses. manufacturing operations in industrially advanced countries (IACs), and the subsequent opening of these same operations in foreign subsidiaries of the same company. According to (Lipietz, ) most of the jobs created in developing countries are more “Taylorism” than “Fordism” and “primitive Taylorism”. {. . What he means by this is that the types of jobs that are offshored mainly in textiles and electronics are not linked by any automatic machine system, but are fragmented and repetitive and therefore to labor intensive in the strictest sense of the term. Frobel wrote that "Most manufacturers prefer female workers because they have longer attention spans than men and can adapt more easily to long hours spent on the assembly line. Plus, they are willing to accept lower wages and are said to have more nimble hands, which is particularly important in electronics..