Thursday, January 17, 2008

In praise of McDonalds

Adrian E. Tschoegl, Global Economy Journal (2007)
Critics have excoriated the US fast-food industry in general, and McDonald's most particularly, both per se and as a symbol of the United States. However, examining McDonald's internationalization and development abroad suggests that McDonald's and the others of its ilk are sources of development for mid-range countries. McDonald's brings training in management, encourages entrepreneurship directly through franchises and indirectly through demonstration effects, creates backward linkages that develop local suppliers, fosters exports by their suppliers, and has positive external effects on productivity and standards of service, cleanliness, and quality in the host economies.
From my casual observation in the UAE, McDonalds and other franchises, are doing exactly that. Thanks to The EclectEcon for the link.

Aside: How many kids do you think would be fooled by these Golden Arches?


Anonymous Anonymous said...

Some time ago, I read the McDonald's theory of diplomacy (Thomas Friedman?) which stated:

"No two countries that have McDonald's have gone to war."

Is that still true? Has it ever been true?

10:32 AM  
Blogger UAE Students said...

From my casual observation in the UAE diabetes is rising at an alarming rate. There is a direct link to the growth of the fast food in the Gulf and diabetes.
McDonalds may have good training, etc. but at what cost?

10:23 PM  
Blogger the real nick said...

@ anonymous

Out of the 192 or so countries in the world McD is present in 118, which leaves plenty of countries to wage war against each other.

McDonalds everywhere?

11:06 AM  
Anonymous Anonymous said...

Real Nick --- I'd never seen that rumor, before. I can list lots of capitals that do not have a set of golden arches.

I double-checked, and it is the NYT columnist that posited that no two countries with the golden arches have ever declared war against each other.

I believe this has since been refuted. Not sure if it was ever a serious peer-review-quality assertion, to begin with.

8:34 AM  
Anonymous Jemima said...

This won't really have success, I believe this way.

6:33 PM  

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