Tnc 's And Free Trade Agreements Essay

1144 Words Apr 16th, 2016 5 Pages
This source is a political cartoon. The leaves of the tree are different TNC’s. The roots of the tree are on multiple countries. This source is in the perspective of people/groups that are against TNC’s and free trade agreements. This source is addressing concepts of outsourcing, tariffs, and free trade agreements. This source was created with the purpose of showing the negative aspects of TNC’s and free trade agreements. Many of the TNC’s shown in this source operate in multiple countries. This is also supported by the documentary, the True Cost. As seen in the documentary, many TNC’s outsource labour in order to maximize profits by reducing production costs. As further seen in the documentary, workers are paid unfair wages, as well as subject to unsafe working conditions. As evidenced by the ‘Race to the Bottom’ activity, many countries ignore environmental and safety laws in order to gain the investment of TNC’s to pay off their debt to the IMF/WB. Free trade agreements lower tariffs and eradicate domestic laws that are ‘barriers to trade’. Therefore, by lowering tariffs and eradicating domestic laws deemed ‘barriers to trade’, free trade agreements/organizations, such as the WTO and NAFTA, make it easier for TNC’s to outsource labour, as well as to operate in multiple countries. However, as previously stated, many countries that TNC’s choose to outsource labour to either do not enforce or loosely enforce environmental laws. With the aid of free trade agreements, TNC’s…

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