Non-monopoly Third World capital
in Imperialism and the development myth
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Third World capital can sometimes win in competition with imperialist capital for the production of simple commodities. To the extent a commodity is labour intensive and can be produced using ordinary labour, it will be more competitive to produce it in the Third World where such labour is cheap and abundant. On this basis we can see the emergence of a small number of large Third World corporations that dominate specific segments of the production process. Yet such production cannot achieve a high, monopoly profit as it can be achieved by many competing Third World producers. Low Third World profits and wages become the determinant around which prices are set for commodities produced in this way. Analysis of the largest corporations in the world as listed on both the Fortune and Forbes databases shows that almost no large Third World corporations are competitive with imperialist-based corporations in the most lucrative areas of the world economy. An overwhelming majority of Third World corporations listed are national, not global monopolies. The far smaller number of Third World global corporations are almost all concentrated into low-end and low-margin economic sectors, or they exist within sectors that are dominated overall by First World companies. As a result, Third World corporations, on average, have far lower gross profits, return on assets and market capitalisation.

Imperialism and the development myth

How rich countries dominate in the twenty-first century

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