the power of multinational corporations

Logic Level 2

Critics of globalization often make the following comparison [1] to prove the excessive power of multinational corporations (data circa 2002):

In Nigeria, a relatively economically strong country, the GDP [gross domestic product] is $99 billion. The net worth of Exxon is $119 billion. “When multinationals have a net worth higher than the GDP of the country in which they operate, what kind of power relationship are we talking about?" What is the most egregious fault in the comparison between nigeria and exxon ?

Exxon is located in many countries other than Nigeria Nigeria, as a country, is free to print as much currency as wants, whereas Exxon cannot do the same GDP is a yearly quantity, whereas the net woth of Exxon has no measure of time the Nigerian GDP is measuredinunits of Nigerian dollars, whereas the worth of Exxon is in US dollars

Zero Infinity same time by Zero Infinity same time , 22, India

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1 solution

The field is competitive, but one fault stands out. It becomes evident after unpacking the meaning of GDP. A GDP of $99 billion is shorthand for a monetary flow of $99 billion per year. A year, which is the time for the earth to travel around the sun, is an astronomical phenomenon that has been arbitrarily chosen for measuring a social phenomenon-namely, monetary flow.

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