Pros And Cons Of Ghost Factory In China

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

American’s now quite overwhelmingly agree that this is not the case. Another secondary argument is that the way the United States has dealt with the Chinese in terms of trade has presented many challenges to American employment. Where the United States once dominated manufacturing, China now leads the world by creating goods for extremely low costs, harnessing innovation in manufacturing technology and orchestrating the theft of intellectual properties. Bonvillian makes a point to mention that innovation in Chinese manufacturing is typically understated in discussions, as most are only concerned with the underpayment of the Chinese workforce. A counterpoint to the belief that a nation has to underpay its workers to succeed in manufacturing is the example of Germany. A large number of German citizens work in manufacturing for high wages, creating more expensive goods. The German’s run a trade surplus with China because of their trade strategies. Another great secondary claim is that the United

For each item China produces for the United States, it helps China’s economy. China would definately not produce goods if it didn’t benefit them in some way. China’s economy continues to prosper everyday because they continue to produce and sell goods to other countries. Prices in China are a lot cheaper in comparison to the United States. Factory workers do not make a lot of money, but they make good money for the work they do. The average China factory worker makes $500 a month, but keep in mind that the prices in China are lower than the United States. These are the reasons that China chooses to produce goods for the United

much more efficient a Chinese worker is when compared to an American one. According to the

China is facing difficulties both inside and outside. Since China cannot regain its advantages, the only choice is transiting away from low-end manufacturing. The days of cheap, endless labor is limited, but has not ended. China still has time to invest in research, design and development and train skilled workers to create China’s own high-tech products and brands. If China could relax the One-Child Policy and invest more on children’s education, Chinese manufacturers could have more skilled workers to innovate and produce their high-tech products. China’s manufacturing is at a

This kink is named oversea factories with horrible working conditions. A factory in Suquian, China, owned by Apple, was found to have “serious health and safety, environmental, and human rights violations.” Articles rarely tell you the specific violations are, but you can probably add them up for yourself. Health violations can include dangerous machinery, not supplying proper safety gear for the workers, and more. Environmental conditions could be considered black mold, something wrong with the factory ventilation systems, or sewage dumping near the factory. Last, but not least to address in this case, is human rights violations and those can go on forever. A few of them are basic slaves, unequipped, and being made to work exceedingly long and unnecessary hours. This means that the iPhones in your pockets were made by other human beings who were being underpaid or not paid at all, working with dangerous machinery, and unsafe

For instance, China has a large labor force with much lower cost of living for the employees compared to the US. China’s workforce is about 98 million employees while the U.S. has only about 17 million workers in the manufacturing field. But the average hourly compensation cost of

Cheap labor is happening all over the world. In most western countries cheap labor is big. Many companies use cheap labor to hire many workers that need a job. Many immigrants are willing to work for cheap labor since they are in need of a job. Some people believe that cheap labor is good for the economy.

Firstly, Sweden has some of the best working conditions in the world. According to the Nations Encyclopedia, an astonishing 87% of Swedish workers belong to a union (2015). Because of this, there is no set minimum wage in Sweden. Instead, wages are set through collective bargaining between the employers and its employees. The Swedish government has also passed legislation that ensures very safe working conditions as well as excellent labor representation. Germany’s working conditions are comparable to the United States when it comes to manufacturing and blue collar jobs. Wages are most times set by the employers but unions also play a role. Considering that close to 50% of upper secondary students are presently enrolled in pre-vocational or vocational schools (OECD, 2015), this means that many laborers and factory workers are of high skill. Therefore, most factories, especially using advanced technologies will have good conditions. China, in contrast, has some of the worst labor conditions in the world. Due to China’s sheer size, there is a very large gap between college graduates and high school graduates. Because of this, a very large part of the work force in concentrated on factory jobs. In 2009, the average hourly wage of an urban factory worker was a meer $2.85 (BLS, 2009). The number of hours worked per day often times exceeds 9+ hours/day. Because housing is so crowded and expensive in China’s main urban areas such as Tianjin, makeshift dormitories will be erected using bare minimum amounts of materials. Military-like security forces will in some instances monitor and patrol the work sites to ensure that there is no absenteeism or

Mr. Jobs responded with“Those jobs aren’t coming back.” He said that because 700,000 people engineer and build and assemble apple parts, in addition to the 43,00 people apple employs in the United States and the 20,000 they employ overseas. Nearly none of those 700,000 people live in the United states, they work in other countries. Some part of the iPhone are American. The software for the iPhone, for instance, and its marketing campaigns were created in the United States. Apple recently built a $500 million data center in North Carolina.“Also another advantage for Apple was that China provided engineers at an extent the United States could not reach. Apple’s executives had estimated that about 8,700 industrial engineers were needed to oversee and guide the 200,000 assembly-line workers eventually involved in manufacturing iPhones. The company’s analysts had forecast it would take as long as nine months to find that many qualified engineers in the United States.”

Recently, in July, Apple discovered that Foxconn are “violating, Chinese Laws and Apple’s own social responsibility code of conduct in part by forcing employees to work unpaid overtime.” This also reflects back to the Industrial Revolution through its use of overtime and pay, but the times the employees are forced to work are unlike any in a developed

Outsourcing overseas is a major disadvantage to the American economy. Contrary to popular belief, companies argue that low- cost labor will in turn save them money and raise competitiveness, which will result in less costly products. When taken into consideration outsourcing eliminates domestic jobs. When a firm outsources, the jobs outsourced are, by definition, removed from the country. These jobs are then sent overseas, where labor is paid far less than in the United States:

Labor is one of the largest and in certain sectors the most expensive component in the production of goods. Outsourcing acknowledges the labor cost to produce a particular product is cheaper if the manufacturer were to produce the same product in-house where the cost per unit is significantly higher. Stable labor costs are important for long-term revenue projections to be relied upon by managers because they are a precursor of where a company is trending financially. It is this efficiency-in-scale that confirms the benefit of the division of labor memorialized by Adam Smith. As a result of the wage disparity between the costs of American workers versus Chinese workers, hundreds of U.S. based firms relocated all or part of their operations to China, taking advantage of the inexpensive labor market and the many cost-saving incentives offered by the Chinese government.

“Inside the factory, amid clattering machinery and clouds of sawdust, men without earplugs or protective goggles feed wood into screaming electric saws, making cabinets for stereo speakers” (Goodman and Pan 1). In the article Chinese Workers Pay for Wal-Mart’s Low Prices by Peter Goodman and Philip Pan the mistreatment of the migrant workers in China is evident. These kinds of behaviors are taking place all over in China. The abuse of the Chinese work force has reached terrible proportions and created unlawful conditions because of the demanding economy of China, and other countries’ needs of the goods; however, the companies that are centered in China are working to make sure their workers are treated fairly.

It is quicker to start a new business in China than in India. If India’s labor laws are better than China’s, it’s only because we’re doing thing in socialism lite.