xploitation in a third world countries involves the tobacco industry. Because of worldwide health concerns tobacco companies have decreased the tar levels in developed countries. At the same time they have increased them in third world countries. Almost all developed countries have tobacco legislation, and less than half the third world countries do, which is partly the result of cigarette companies heavy lobbying efforts. In Argentine cigarette companies purchase 20 % of all advertising time. Globally cigarette consumption is growing faster than the population. U.S. tobacco companies create strong incentives to local farmers in less developed countries to grow tobacco instead of crops used for domestic food production. The offer farmers startup cost, underwritten loans, and they guarantee purchase of the crop. In the case of one American textile company operating in Mexico was charged with misconduct trying to do the right thing. It pays its workers the same wages as other local firms do. Critics in the United States charged that the American company with exploiting its Mexican labor force. In response to this charge, the company raised the wages of the employees. The surrounding local firms then accused the company of enticing away their best workers, creating unrest in the industry, and forcing higher wages on the local companies to drive them out of business. Driven by the profit motive, Multinational corporations will always be tempted to adopt the least costly moral principles that a given cultural context will allow. Corporations are continually seeking sources of competitive advantage. American Multinationals have a good deal of power and can influence a poor country’s decisions in various ways. Multinational companies should have a responsibility to promote the protection of human rights. In an increasingly globalized world economy, their decisions and actions impact directly the government policy and the realization of h...
