strous effects on the economic and political fortunes of the poor countries (Ray, 1992, p. 314). Multinational corporations tend to take more money out of the developing countries than they put back into them, use inappropriate capital-intensive technology (in countries with a labor surplus), and encourage conspicuous consumption among the rich of the countries, while encouraging the poor to consume worthless items (often in the place of useful items) (p. 314).
Dependency theorists point out that the finance capital generated by the natural resources of the developing countries is almost never used to develop institutions such as local factories and schools, which could be used to generate even more wealth for the country. Instead, the finance capital is siphoned off to the developed world (in the form of dividends, royalties, and fees) in order to finance the industrial expansion of the affluent societies. Most of the capital which remains in the developing countries is left in the hands of the local elite, who are closely tied to the foreign capitalists, whe
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