France offered Daewoo US$50 million up-front capital, plus extra cash for each person trained, plus cheap electricity and land, plus a five-year tax holiday which can be taken at any time in the plant's life. Mexico offered a similar deal. Vietnam offered protection from competition for 10 years, plus tax concessions. When it came to South Africa Daewoo got the support of Amic, the industrial wing of South Africa's largest TNC, the Anglo American Corporation, to help them lobby the South African Government. Together they showed the new democratic South African Government what the other countries had offered. Amic director Laurie Oliver was pleased with progress. He said, "Government is coming round to the view that foreign industrialists will not manufacture in South Africa unless they receive incentives competitive with those on offer overseas".

It is not known where Daewoo finally built its TV tube factory. The point is to show what pressures corporations put on governments.

Daewoo is the 22nd largest corporation in the world, worth US$ 44 billion. Its profit in 1993 alone was over US$ 482 million.

Issues to think about:

• Do you think governments should offer financial incentives to corporations like Daewoo so that they will invest in the country? In other words, should global corporations be subsidised by governments?

• What would be the real benefits to the majority of South Africans, Vietnamese, Mexicans or French people if Daewoo made TV tubes in their country? In what way would Daewoo be contributing to their development?

• How much does your government listen to the needs of TNCs?