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In your e-textbook Chapter 10 Global Inequality the problem of capital flight and its consequences is discussed.
Capital flight is defined as the movement (flight) of capital from one nation to another via jobs and resources.
There are several major consequences to phenomenon of capital flight in a global economy. Read the insert in
your e-text “Capital Flight, Outsourcing, and Jobs in the United States” for a description of consequences to
communities in the corporation’s “country of origin” (where they are moving out of). There are also dramatic
consequences for “host country” communities (where corporations move capital and resources to). Watch
Maquilapolis: City of Factories (The first 10-15 minutes will be sufficient to gain an insight, highly encourage
you to watch in its entirety) for insight into the consequences to the “host communities” of transnational
corporations.
Answer: (250 -500 words)
Should corporations be held accountable (social, economic, and environmental) to communities they leave
(Detroit) and host communities such as the Maquiladoras? Why or why not? Who is responsible for a
community’s social, economic, and environmental sustainability?
Sample Solution
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