The impact of multinational corporations, global trade and extreme weather in West Africa: Difference between revisions

The main goal of the MNCs is to maximalaze their profit. Many of them are participating in various development programs and are investing big amounts of money into them. But this doesn't match with their main goal- the profit. They have to keep this because they have the responsibility towards their shareholders. Their shareholder are expecting their share to grow as much as possible so they have better income. And if some MNCs invests so much in development aid the cost of its production is growing and it looses profit. The MNCs are not motivated in foreign aid because it contradicts to their main goal. In reality this means that the farmers receive just a minimal wage or buying price for their crops. The MNCs also tend to enter in short term contracts with farmers so they have no future possibility to improve their income because the MNC would not enter the contract again if they would ask for more money.  

As an example we can take the cocoa production in west Africa. The Ivory coast and Ghana are the biggest exporters of cocoa in the world(especially Ivory Coast). This cocoa is exported into the developed nation for very low prices and then turned into expensive chocolate confection or industrial chocolate. The west african farmers have a minimal share on the profit. In 2001 Nestlé corporation was even accused of buying cocoa harvested by enslaved children. The children were taken from their families and forced to work in terrible conditions. Nestlé expressed its concerns but sad that they have no evidence that the cocoa is derived from slave labor.  

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