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by krschultz 6192 days ago
And they pay rent in what country?

Built buildings in what country? With materials and contractors sourced from what country?

Have employees from what country?

2 comments

So are you suggesting that IKEA is in the philanthropic business of propping up developing countries? At a loss, they will provide local workers with employment, will hire local construction companies to build unneeded crap just to help them out? Really?

I know a large part of IKEA's corporate structure is a non-profit organization, but trust me, that is only to evade taxes.

This is a giant corporate entity vs. a giant corrupt government. IKEA is complaining against the complicated bureaucratic nightmare that Russia set up so that it would be easier to extract bribes from companies like IKEA. _Technically_ IKEA is one breaking some local construction safety rules. Somehow I don't see Russians re-writing their crappy laws and regulations to suit IKEA. They might let IKEA ignore some of them... but that is exactly where the bribes come in ;-)

So far IKEA is going about it the right way -- shaming Russia on the international level.

IKEA does not have to be "in the philanthropic business" to benefit the countries in which they have operations. The fact that they make a profit does not preclude other people (the landlords, contractors and employees in the post you replied to, among others) from benefiting. Economics is not a zero-sum game. Wealth can be created. More at http://www.coyoteblog.com/coyote_blog/2007/04/wealth_creatio...
Sure, but on the whole they make a profit, so the money they take out of the country will be more than what they bring in the form of products, rents, wages, etc. or otherwise they would go bankrupt.