Excessive control of raw materials markets by transnational corporations
For many raw materials the world market (excluding the centrally planned economies) is controlled by a few giant companies based in developed countries. The developing countries which face this concentration of buying power are unorganized and poor. Not surprisingly, their share of the profits from their exports is small. Most of the money stays with the corporations in developed countries.
For example, five companies account for 75% of the world tea market; six companies control 50% of manganese ore capacity; three companies control 60% of banana imports (90% in the USA); and six companies control 76% of the world's alumina production capacity. In the major importing countries the market control is even higher. Five companies have 78% of the tyre manufacturing capacity in the USA; four of them have 70% of the coffee market, another four share 70% of the refined copper market, and yet another four control 77% of the chocolate manufacturing capacity.
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