Global Big Business Is the Most Powerful Force for Improving Labor Standards in Developing Countries. Discuss.

In continuation, the United States federal government should enforce legislation to restrict outsourcing to protect human rights of foreign laborers. Today, American citizens simply cannot know the working conditions of the factories that make the products they buy. This is hugely beneficial for corporations who want to keep us ignorant of their activities. We know about extreme incidents such as the Rana Plaza collapse that capture the world’s attention, however briefly, or when workers get so fed up with the conditions that they strike long enough and loud enough to get the Western world’s attention. But the day-to-day disasters that maim or kill a single worker or the accumulation of lead in workers’ bodies—those go almost completely unreported.

It’s important to have labor restrictions and eliminate unfavorable wages and poor working conditions in the developed importing countries. The low labor cost in developing countries is the result of poorly

Furthermore, make minimum safety standards. Improving health and safety conditions would cause a greater good than harm. In 1988, after nationwide survey by more than one hundred state and federal officials, The United States General Accounting Office (GAO) identified the garment, restaurant, and meat-processing industries as those most frequently considered sweatshop industries. These three have the most widespread problems, committing multiple violations of labor laws and safety regulations (Foo 2180). For example, The Triangle Shirtwaist Factory fire in New York City in 1911. Their conditions were horrible. Women stitching up clothes with over forty one workers, 125 of them women and children who were mostly immigrants. Being burned to death most jumped out windows in the building. This terrible tragedy was the first out of many accidents. There should have enforcement of laws to ensure that these incidents are not repeated again (Rosen 1). Also, if they are

What’s important to examine is that before the Triangle Factory Fire is that that casualties from unsafe conditions were reported and expressed as a concern before. Where was the outrage that pushed for safer working conditions? The answer to that is that there were many times that people were upset with such conditions.

The fire, the largest in recent years, killed more than 100 garment workers. This tragedy although rare in size is by no means uncommon to factory workers in Asia. This is because just as in previous generations major businesses demand the largest possible profit margin

In the 19th and 20th centuries, factories were very unsafe places to work, yet they were where most people found jobs. Factories had accidents all of the time, but the most notable of the tragedies is the Triangle Shirtwaist Factory Fire. The results of this event and many other factory accidents in the late 19th and early 20th centuries led to better overall conditions for workers, especially immigrant workers. In the case of the Triangle Shirtwaist Factory Fire, employees were forced to work under horrible conditions. Many times, the employers abused their workers by setting clocks in the factory backwards which forced their workers to unknowingly work longer shifts for the same amount of pay. Also, most factory buildings in this time were highly unsafe, especially the Triangle Shirtwaist Factory Fire in 1911.

In the third world countries such as Vietnam, China, South Korea and Taiwan, we are provided with an example of cheap labour. These corporations could now achieve the benefit of the United States consumer market8, while keeping their costs extremely low in offshore production. The working conditions in the United States were poor for centuries, often little to nothing was done unless a tragedy occurred to influence worker rights by the public. This was the issue during the Industrial Revolution and in the late 20th century. In the United states, improvements have been made and these conditions have disappeared, with the privilege in some agricultural areas. Companies from the United States have moved a considerable amount of their factories

From the minute Chinese citizens began to work for outside companies, they were exploited and taken advantage of. (Miller 2013) Once sweatshops were outlawed in North America and Europe in the mid 1900s due to their inhumane practices, foreigners were quick to flock to developing countries that did not have the same laws in place. Firms sought out manufacturers in poorer nations that could provide the highest quality product at the cheapest cost and Chinese migrants were easy prey for manufacturers who paid small wages and offered poor working conditions. Meagre social and economic conditions in developing China resulted in a great amount of people willing to accept any wage and management systems that neglected the workers. Multinational textile firms soon grew to rely on foreign subcontractors for their production needs. (Pugatch 1998) The system estranged corporations from the production process, and in turn resulted in the estrangement of the consumers from the production process, which encouraged and continues to encourage the ignorance that fuels the sweatshop system. The relationship between corporation and producer was only further separated as agents arranged subcontracting for companies, allowing these companies to have the goods they were selling produced in factories they had never seen. The subcontractors were met with severe corporate deadlines and targets in order to stay in business, leaving workers as the sacrificial

Workers in overseas most of the time will work in factories in automated lines doing the same monotonous task day and night and the task sometimes endangers their lives. Some of the workers are children, which raises even more concerns and puts more pressure on businesses to create better safety

Economies of large-scale production: International business leads to manufacture on a large scale because of widespread request.

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

Increased globalization is the direction that all major multinational corporations are moving towards. Ford had made a good attempt at making a world car that proved to be partially successful in the beginning of sales. The company has learned that locational specialization is an extremely important aspect to selling globally because of the differing personal preferences and legal demands.

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

The following pages focus on analyzing the effects of globalization on labor markets, which is an important international business topic. The Introduction presents the points of view used in addressing this issue. The Labor Markets section presents some of the most important characteristics of labor markets that must be presented in order to understand how they are affected by globalization. The Key Priorities of Labor Markets section presents some of the most important priorities of governments determined by globalization. The Globalization of Labor Markets and The Effects of Globalization of Labor Markets section provides an analysis of this issue, its effects and its importance. The Conclusions section provides some of the most important issues addressed by this paper.

Globalization can be seen as a major threat for manufacturing jobs in the developed world, however, can also be a benefit for developing world citizens who receive thousands of jobs a year although they don’t receive a high salary. Maurice Allais, a French economist states that this unemployment, of course, has only been able to develop because of the existence of low salaries and insufficient flexibility in the labor market (April 10th, 1999). This indicates that globalization has jeopardized Western countries jobs because companies are moving their establishments to developing countries where they don’t need to pay employees as much and where land is cheaper so overall businesses benefit from this. Also, employees in the developed world are at risk of becoming redundant as they are susceptible to face pay cuts in jobs. Employees are less skilled in the developing world as they don’t receive the benefit of an education like developed countries do. So a company may want to build factories in these countries because environmental laws aren’t as strict. Establishments in these areas provides promising jobs for the local people and allows them to learn new skills, however they are set on minimum wage which in developed world countries, this would not be enough to live on, wherein third world countries this is still a low amount so this is not enough to bring them out of poverty meaning that the only one who benefits from this is the company. Although there have been several arguments against exploitation and oppression, the majority of developing countries do not have existing laws which take minimum wage