Econ101 said:
I do talk about multinational corporations because they are playing the trade game to the detriment of domestic producers. Multinationals would be okay in my book if we didn't have a trade deficit and they treated the rest of the world they operate in as they should. Too many don't.
I read the 'good vs evil' on here quite often, and I sometimes wonder if we're writing childrens fairy tails. Multinational corporations, especially the Cargills and Tysons aren't necessarily evil, however they do not work in the interests of producers as many would have you believe, but rather in the interests of their shareholders. Is this evil? I wouldn't say so, but rather good business sense. However the interests of the shareholders aren't the same as North American cattle producers.
If Canada and the US dropped over-quota tariffs on South American beef, how quickly do you think Cargill/Tyson/Swift/et al would rush to fill the North American market with that ultra-cheap beef? Do any of you producers in North America really honestly believe that we can compete with that beef on a dollar for dollar basis?
How about the plains on Mongolia? There are MILLIONS of acres of chest high grass, just aching for a few million head of beef. With Mongolian wages being measured in a few cents per week, do you think we can compete? But if Cargill/Tyson/Swift/et al get their foot in the door, you can bet we'll see that beef over here, as its going to be cheaper. Is this evil? No, once again, just good business sense that runs contrary to producer interest.
For those of you in North America who feel that our grain and beef trade is immune to cheaper alternatives, I ask that you wake up. You watch in a few decades as Canada and the US increase (or drop all together) quotas on South American beef (and Mongolian, once they develop the industry). You can bet Tyson/Cargill/Swift/et al will be right there to reap the benefits.
Evil? No.
Bad? I'd say so. At least for North American producers.
Multinational corporations are a good idea whose time simply hasn't come. When all countries are on level playing fields with regards to government, wages and standards of living, then I say let the multinationals operate to maximum efficiency. Until that time, government has to stop pandering to their desires and remember that they are there to represent the PEOPLE, not the companies they work for.
Rod