Firm myths
2,316 views · Published 5 May 2015 · 5:59 · Indexed 19 October 2026
Channel: Marginal Revolution University · 2015 · Education
This video covers two common beliefs about multinational firms that are actually myths. The first myth pertains to the claim that a multinational corporation can be "bigger" as an economic entity than a country. This compares a company's capitalization with a country's GDP, which confuses stocks and flows. The second myth is that multinational companies exploit poor workers in developing countries by paying them very little. In fact, evidence shows that the presence of multinationals helps drive wages higher. This video explores both of these myths in depth. International Trade course: http://mruniversity.com/courses/international-trade Ask a question about the video: http://mruniversity.com/courses/international-trade/firm-myths#QandA Next video: http://mruniversity.com/courses/international-trade/productivity-firms
