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Originally Posted by Agamemnon
I don't think China is a good example. Malaysia, Indonesia, Central America, SE Asia are good examples. China has had control over its marketplace to a much larger extent than many other countries (probably due to its extremely effective communist past/present). It has been able to have a greater say in dictating terms like where in China a company sets up shop, and how much these workers are to be paid.
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Not really. I can set up shop wherever I want, but yes the government can make conditions "favourable" in certain areas. The same can said for a lot of the countries you mentioned as well.
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For sure, Chinese labour remains fairly cheap. But this is, I think, because its the way China wants it for now. They're #1 goal is economic expansion at all costs, including the welfare of their citizens. But China also gets trade offs, payoffs from companies who set up shop, say over what is produced and how, say over who gets which jobs, etc.
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I agree with that. The main reason we are there is the cheap labour/resources. It's a trade off...they get our expertise, we get short term access to cheap products.
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Belize just doesn't have the same economic clout that China has/had and is not able to dictate nearly as many aspects of the TNC relationship, nor is it necessarily possible for Belize to 'learn from China'; they're just not in the same weight division (few are w/ China).
China is not a good example of 'the developing world'. Its too big and has too much say over what happens inside it.
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I certainly understand what you're saying, but I'm providing a case study that you can't necessarily "throw out" because the country is too big or the government is too powerful. There are literally countries within the country, much like the countries within Indonesia. If I don't like the way business is done within Guandong province, there are several other districts waiting in line much like Caramon's Indo/Malaysia/Thailand comparison. Granted, the money stays in the country but it is being utilized in another region much like how currency would be used in another country. If I set up shop in Belize, teach them all about metal casting, then decide to go to Sri Lanka, is the company I set up/trained in Belize going to sit there waiting for me to come back? Of course not. The same would go for textiles....just because Nike left doesn't mean the company they set up all of a sudden forgot how to make shoes.
To me China should be considered as a good example of the developing world. There is just as much (if not more) poverty within the country in comparison to a lot of supposed 3rd world countries (look inland, not on the coastal cities), and the way in which they are going about developing the lower class citizens is really quite interesting. From what I hear India is going to take the same sort of approach, and it is a country with a population much like China, has poverty issues but a workforce willing to work towards changing that, much like the population of China.
With 2 countries making up almost 3 billion people, how can you label one or the other as a poor example of a developing nation? Because they're communist? Too powerful a workforce? Too much military? It's such a diverse place, with such a huge population, that it really isn't much of a surprise that when people think the government rules with an iron fist and runs 24hr wiretaps on its citizens, it really doesn't. Tax evasion is common, bribery is common, crime is not AS common but is there, much the same as India and much like Malaysia or Central America, both of which you're qualifying as good examples of developing nations.