Why are U.S. corporations shifting more and more of their total assets outside the United States? What are the consequences of the shift in production to other countries?
What will be an ideal response?
Ideal Answer The ideal answer should include the following:
1. Outline the three main reasons U.S. multinationals move offshore. Students should touch on increased profits, cheaper production and labor costs, and lax labor and safety laws.
2. Describe the consequences to semiskilled and unskilled laborers in the United States.
3. Describe how this increases the power of transnational companies. Students should mention the twin processes of concentration and internationalization.
4. Conclude with a discussion of the interplay between transnational companies and foreign governments.
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A. Stanley Milgram B. John Hope Franklin C. W. E. B. Du Bois D. Eugene Debs
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