Jacob Dearing
October 11th, 2015
Critical Abstract #9
Article author: Brewster Kneen
Article title: The Invisible Giant: Cargill and Its Transnational Strategies
When looking at environmental degradation or the hardships of local agricultural communities often large or international corporations have had some role to play. Brewster Kneen investigates Cargill, “the largest private company in the United States” and explains its development, methods of growth, and strategies to survive internationally. Cargill’s development is shown to come from subsidy programs instituted by the US government over the past 50 years. Kneen explains that the benefit from subsides after the Second World War was the reason for Cargill’s early expansive success. The addition of future subsidies expanded Cargill’s reach in to countries outside of Europe.
The author describes the ways in which Cargill internally influenced US government policies through different methods of lobbying. Such methods include “the revolving door” in which “ex-employees” would gain a governmental position and then advocate for Cargill’s favorable agenda and then be rehired by Cargill.
Also, Kneen explains Cargill’s international success can be described by the methods they use to enter into new countries and into new product markets. Cargill establishes “beachheads” by the process of “capital input, technology and management, positive cash flow, re-invest the case flow, and expand” Kneen summarizes this by explaining that its easier to enter a country with a small development and then expand it. After expansion has begun Cargill has the ability to dominate competitors.
Fortunately, Cargill does have limits Kneen describes that Japan and India have voiced their distaste for Cargill’s business practices. Kneen shows the importance of monitoring big corporations strategies that show interest in international expansion as well as the ability to prevent their effects through resistance of the community.