The record of the multinationals in this regard, however, leaves a great
deal to be desired. The highly centralized systems of decision making
frequently mean that centralized corporate interests relating to the profitability,
growth, or strategic development of the multinational as a whole
take first place in decision making, with localized community or national
interests taking second. Thus, when strategic considerations lead the executive
staff of a multinational to divest its holdings in a particular industry, to
close down a particular plant, or to restructure its operations internationally,
the consequences can be devastating for the communities and countries
involved. Consider, for example, how the shift in search of cheaper, nonunionized
labor has led many firms to leave relatively high-priced cities in
Canada and the northern United States for locations in the southern states,