History Lesson 29

Las Empresas Multinacionales – Multinational Corporations

In a complex global economy, materials and products are shipped incredible distances. The items we buy have often traveled to three or more countries for different parts of the assembly and production. It’s only logical that companies take the means at their disposal to bring their products to us at the lowest possible prices. But what does this practice mean for the other countries?

In Latin America, it has often meant severe oppression. One example we mentioned several weeks ago is the United Fruit Company. This American company was the true power in much of Central America for much of the last century, owning most of the land and simply disposing of governments that made their business less profitable or convenient.

This and other similar situations are often the ugly truth behind the label “Made in Guatemala” or “Assembled in El Salvador.”

How to Use This Page:

1. Listen to the audio as you read along with the Spanish on the left.

2. Open the English translation, and read the two side-by-side, making sure you understand the Spanish.

3. Close the English, and listen to the audio again, reading along in Spanish.

4. Close the Spanish, and listen once more. Maybe shut your eyes, and just try to catch as much as you can.

Las empresas multinacionales han tenido una parte central en la historia de la gente latina, y siguen siendo una parte importante de su vida hoy. Hay tres motivos que las compañías extranjeras tienen cuando operan en Latinoamérica.

Primero, las empresas encuentran el labor muy barato en los países de Latinoamérica. El dinero que un obrero estadounidense recibe por un día de trabajo podría comprar una semana, o hasta un mes de trabajo en estos países. Aunque esta práctica trae empleo necesario, muchos obreros viven en pobreza extrema y sufren el abuso y condiciones laborales peligrosas. Cuando los obreros han tratado de organizarse para pedir mejor trato, muchas compañías, como Chiquita y Coca-Cola, han trabajado con grupos locales de terroristas para asesinar y amenazar a los empleados. Unas compañías estadounidenses, como United Fruit Company, son responsables por varias décadas de guerra civil y caos.

La segunda razón por operar en Latinoamérica son los recursos que son disponibles. Desde los plátanos y el café hasta el petróleo y el litio, Centroamérica y Sudamérica tienen una abundancia de recursos que están en demanda por todo el mundo. Desde la llegada de los primeros europeos, los recursos de Latinoamérica han sido explotados y exportados en cantidades enormes. Aunque esto trae ingresos a estos países pobres, casi todas las riquezas quedan en las manos de los oficiales del gobierno y las empresas extranjeras. También, las empresas agotan los recursos y dejan mucha contaminación.

Otra razón por el cual las compañías extranjeras vienen a Latinoamérica es para vender sus productos y servicios a los residentes de estos países. Aunque casi toda la población vive en pobreza, todavía hay mucho dinero que se puede ganar vendiendo productos en estos mercados. Wal-Mart ahora tiene muchas tiendas en México y sigue creciendo. También, compañías extranjeras como Proctor & Gamble suministran casi todos los productos de salud y belleza a Latinoamérica. Cuando estas compañías entran al mercado latino, las empresas locales pierden su clientela y cierran, y el lucro de estas ventas no beneficia la gente de esos países.

Es un asunto complicado, pero cuesta mucho comprar productos baratos.

Multinational corporations have had a prominent part in the history of the Latino peoples, and they continue to be an important part of their lives today. There are three motivations that foreign companies have when they operate in Latin America.

First, businesses find very cheap labor in Latin American counties. The money one American worker receives for a day of work could buy a week, or even a month of labor in other countries. Although this practice brings needed employment, many workers live in extreme poverty and suffer abuse and dangerous working conditions. When workers have tried to organize themselves to request better treatment, many companies, such as Chiquita and Coca-Cola, have worked with local terrorist groups to murder and threaten the employees. Some American companies, like the United Fruit Company, are responsible for several decades of civil war and chaos.

A second reason for operating in Latin America is the resources that are available. From bananas and coffee to oil and lithium, Central and South America has a wealth of resources that are in demand around the world. Ever since the arrival of the first Europeans, Latin America’s resources have been exploited and exported in vast amounts. While this does bring income to these poor counties, most of this wealth remains in the hands of government officials and foreign businesses. Also, the businesses deplete the resources and leave behind a lot of pollution.

Another reason that foreign companies come to Latin America is to sell their products and services to the residents of these counties. Though most of the population lives in poverty, still there is a lot of money that can be made by selling products in these markets. Wal-Mart now has many stores in Mexico and it continues to expand. Also, foreign companies such as Proctor & Gamble now supply most of the health and beauty products to Latin America. As these companies enter the Latino market, local businesses lose their customers and close, and the profits from these sales do not benefit the people of those countries.

It is a complicated matter, but it costs a lot to buy cheap products.

Preguntas Básicas

1. What are three reasons that multinational companies operate in Latin America?

2.How have some American companies responded when workers organize and request better wages or working conditions?

3.Why do the poor people of Latin America not benefit much from the sale of their natural resources?