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Impact of globalization in international business
The impact and impact of multinational companies on developing countries
The impact of multinational companies
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Following the globalization, many companies in developed countries move factories to developing nations. As a multinational company, there is at least one facility in one country other than its home country. Those companies have offices and factories in different countries and usually have a centralized head office in their home country. Advocates of multinationals say they create jobs and wealth. And multinationals can improve technology in developing countries, which are in need of this. On the other hand, critics say multinational companies often barely pay employees enough to live on in developing countries, and it is unethical to pay cheap wages.
In today’s world, increasing big companies open factories in developing countries but many people said it is unethical and the factories are sweatshops. Most of the sweatshops were opened in east Asia and third-world countries and regions. The companies open the sweatshops in order to get more benefits is a kind of very irresponsible behavior. For example, Apple's factories in China are not good and unethical. Audit finds
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Is it only a sweatshop to earn more money for the multinational company? Second, what is the present status of workers in developing countries? Then the most important one is the wages that multinational companies pay employees and the multinational companies’ relationship with workers in developing countries.
With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies
The controversial issue of sweatshops is one often over looked by The United States. In the Social Issues Encyclopedia, entry # 167, Matt Zwolinski tackles the issues of sweatshops. In this article Matt raises a question I have not been able to get out of my head since I have begun researching this topic, “ are companies who contract with sweatshops doing anything wrong?” this article goes on to argue that the people who work in the sweatshops willingly choose to work there, despite the poor environment. Many people in third world countries depend on the sweatshops to earn what they can to have any hopes of surviving. If the sweatshops were to shut down many people would lose their jobs, and therefore have no source of income. This may lead people to steal and prostitution as well. this article is suggesting that sweatshops will better the economy by giving people a better job than what they may have had. Due to this the companies contracting with sweatshops are not acting wrong in any way. This was a deductive article it had a lot of good examples to show how sweatshops are beneficial to third world countries. Radly Balko seemed to have the same view point as Matt Zwolinski. Many people believe the richer countries should not support the sweatshops Balko believes if people stopped buying products made in sweatshops the companies will have to shut down and relocate, firing all of the present workers. Rasing the fact that again the worker will have no source of income, the workers need the sweatshop to survive. Balko also uses the argument that the workers willingly work in the current environments.
The lack of ethics concerning global issues can be found in the sweatshops of underdeveloped and third world countries. This issue has developed from the indiscretion of industries and employers. Industries treat their employees poorly; moreover, employees are subjected to extremely poor working conditions, poverty wages, and little to no benefits or union representation. The competition of industries has created these oppressive practices. According to research done by Jay Mandle at Cambridge, in countries such as Bangladesh, sweatshop workers are paid only 13 cents per hour in US money. These workers are subjected to extremely overpopulated sweatshops, being that an astounding 3.5 million workers make up the workforce of 4,825
With the continued rise of consumer "needs" in "industrial" countries such as the United States, and the consistently high price that corporations must pay to produce goods in these countries, companies are looking to "increase (their) profits by driving down costs any way possible... To minimize costs, companies look for places with the lowest wages and human rights protections" (Dosomething). Countries with lax or unenforced labor laws grant multinational corporations the leeway to use cheap foreign labor to mass-produce their commodities so that they can be sold in countries like America. These inexpensive, sometimes borderline illegal, establishments are known as sweatshops. In his book Timmerman discusses the topic of sweatshops in great detail. Originally in search of "where (his) T-shirt was made(;) (Timmerman) (went) to visit the factory where it was made and (met) the people who made (it)" (Timmerman5).
...e their product. Sweatshops are found usually all over the world and need to make a better decision as in more labor laws, fair wages, and safety standards to better the workers' conditions. It should benefit the mutually experiences by both the employers and the employees. Most important is the need to be educated about their rights and including local labor laws.
Some people of North America know about these sweatshop workers, they feel bad and some also protest. They set up NGOs, send funds and donations but they never try to break the tradition of sweatshop working. They all assume that this is best for the society. An Idea can be drawn from William
It is often said that products made in sweatshops are cheap and that is why people buy those products, but why is it behind the clothes or shoes that we wear that make sweatshops bad? In the article Sweat, Fire and Ethics by Bob Jeffcott is trying to persuade the people and tell them how sweatshops are bad. Bob Jeffcott supports the effort of workers of the global supply chains in order to win improved wages and good working conditions and a better quality of life of those who work on sweatshops. He mentions and describes in detail how the conditions of the sweatshops are and how the people working in them are forced to long working hours for little money. He makes the question, “we think we can end sweatshops abuses by just changing our individual buying habits?” referring to we can’t end the abuses that those women have by just stopping of buying their products because those women still have to work those long hours because other people are buying their product for less pay or less money.
Most sweatshops have been known to be unlawful, but yet it doesn’t stop them to still be around today. Workers working in sweatshops are known to be getting paid small amount of money while working long tiring shifts, sometimes without being allowed to take a break. Many corporations have their products produce in third-world countries such as Guatemala, Pakistan, Vietnam, etc. where it costs them less to produce goods since they are paying their workers almost nothing. It is believed that it
I. Introduction A sweatshop is a workplace where individuals work with no benefits, inadequate living wages, and poor working conditions (Dictionary.com). Sweatshops can be found all around the world, especially in developing nations where local laws are easily corrupted: Central America, South America, Asia, and in certain places in Europe (Background on Sweatshops). China, Honduras, Nicaragua, the Philippines and Bangladesh are the main places where most sweatshop products are made (McAllister). Often, sweatshop workers are individuals who have immigrated and are working in other countries.
The cheap labor is an important factor in the investment attractiveness of the country, Third World counties such as Indonesia and Bangladesh offers United States cheap production of goods , however most of the time they are made in sweatshops, under terrible working conditions and low wages that barely supports their needs . Many people are against sweatshops , they believe that its against human rights and labor laws. Although sweatshops have negative impact on workers health , I think that sweatshops are beneficial to poor nations because it provides jobs and increase their countries economy. John Miller, professor of economics wrote an article “Why Economists Are Wrong About Sweatshops and the Antisweatshop Movement” in which he argues
Nicholas D. Kristof and Sheryl Wudunn are Pulitzer Prize-winning New York Times journalists who spent fourteen years in Asia doing research on the country as well as the sweatshops of that country. In their article "Two Cheers for Sweatshops" they sum up clearly the misunderstanding of sweatshops by most of the modern world. "Yet sweatshops that seem brutal from the vantage point of an American sitting in his living room can appear tantalizing to a Thai laborer getting by on beetles." The fact of the matter is that sweatshops in the eyes of the actual workers are not as bad as they are made out to be, by many activists. Though many organizations that oppose sweatshops and their labor practices try to make the point that sweatshops do not have to exist. But one must consider the fact that, the companies that use sweatshops are creating at least some type of jobs for people that gladly accept them.
Before we attempt to understand child labor in the present, we must understand the earlier stages of child labor, as well as what it entailed on a day to day basis. In “Child Labor and Sweatshops” edited by Mary E. Williams, it says, “When he was four years old, Iqbal Masih was sold into bonded servitude by his parents, a common practice of poor Pakistani families hoping to pay off debts owed to landlords and local merchants. For the next six years, Masih was forced to work in a carpet factory...for up to sixteen hours a day, six days a week” (7). You can see that even at the ripe age of four years old, kids were put into labor by their own parents. In some parts of the world, kids woke up early to help tend to the agricultural aspect of
First of all globalization has led to exploitation of labor. We can’t ignore the fact that ethical aspects of international business deserve special attention. Corruption and engaging in illegal practice to make greater profit is a source of continuing controversy. Sometimes companies go international and move their production to foreign countries so they could employ workers for long hours, at low wages and in poor working conditions (sweat shops). They are also using child labor, the employment of children to a full time work that can be otherwise done by adults all that so they could get out of their responsibility towards their workers by avoiding paying them national insurance …When these multinational firms go abroad they forget all about principles and about human beings and their rights, according to Kent, J., Kinetz, E. & Whehrfritz, G. (2008/March24). Newsweek. Bottom of the barrel. “The dark side of globalization: a vast work force trapped in conditions that verge on slavery”, David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62) also agrees with them when he explained his concerns about Chinese and Indians t...
Foxconn has factories in Asia, Europe, Mexico and South America why is it that only China’s Foxoconn was in highlight and not any other country? While the Chinese factories happened to be the largest factories in China, these factories are also facilitated with dormitories and other infrastructure to host the workers and provide workers to go back at end of the 12 hour shift to relax and reenergize for the next shift. A quarter of the employees live in these so called dormitories. My Case study will analyze how the various news sources revealed the global sweatshop to the world and the reactions by the companies who were using Foxconn to manufacture electronic goods. The Chinese newspaper displayed Foxconn employees having social and psychological reasons leading to suicides whereas US news showed it as human rights violation. Both of them did not acknowledge the social justice and world economy aspects and steps that were taken by the electronics giants to rectify the problems that were being faced in Wuhan, China.
However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provide a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine in what ways, and to what degree, it has changed over time.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.