The Exploitation of Low-Income Countries by High-Income Countries

1392 WordsMar 24, 20116 Pages
The exploitation of low-income countries by high-income countries INTRODUCTION Over the years living conditions around the world have improved, even in the poorest of countries. Despite this there is still a clear difference between high-income countries and low-income countries. High-income countries are defined as countries with very productive economic systems where the majority of people have fairly high incomes, while low-income countries are defineed as having low economic systems where most people are poor and many do not meet living standards (Macionis et al., 2005, pg 439). Even though poverty can be found all over the world citizens in low-income countries are living in absolute poverty rather than relative poverty…show more content…
The U.S. imports material for the sweatshops duty free where it is then assembled and manufactured into the good needed. When Mexico sends the goods back to the U.S. the American companies only pay duty on the material added by Mexico (NAFTA, 2011). Exploitation by high-income countries does not only happen in low-income countries, but as stated above, also in middle-income countries. Having sweatshops across the boarder is convenient and reduces costs, but there are places in the world where labor is even cheaper than in Mexico and companies such as Disney World ® take advantage of this as well. For years Disney World ® has been related to children, purity and innocence, but in the sweatshops where these products are being created, many of the workers are children working in dirt-poor conditions. In 2004 Haiti was an example of the inhuman conditions of Disney ® sweatshops, where workers were only making between 15-20 US dollars a month after taxes. For years companies have made the excuse that the cost of living in a low-income country is lower, but “everything is put into perspective when it 's noted that it costs 20 dollars a month to rent a one-room shack with no running water” (Kopp, 2005). Comparing these figures to the hourly income of CEO Michael Eisner of 102,000 US dollars the difference is
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