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The effect of globalization on communities
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Global community chains are interconnected lines through which the distribution of goods and services all over the world. These chains are enhanced and maintained through the individual efforts of nations that collaborate for the benefit of themselves. They relate diplomatically, economically but most importantly for the benefit of trade. However, the community chains are governed by labor rights. These labor rights are set in accordance with the economic standards. These labor standards are restructured for the sake of international products. In the modern era, there has been the expansion of exports in manufacturing products but not in raw materials. With individual countries finding it difficult to compete, there has been the need to sustain …show more content…
First of all, they make it easier for a product to reach people anywhere they may be on the globe. These chains ensure that a product is at the right place where the demand for it is required meaning that, consumers of a certain product don’t need to travel for very long distance to acquire a product. A good example is that Nike products are sold all over the world but are not manufactured in all those countries. Additionally, these chains help improve the quality of a product. This is due to the ever stiff competition that other producers of the same products may face. Although there are labor rights that govern the distribution of these products, the competition is always there to improve the quality of a product (Bair, 2005). The global chains also provide a link between the developed and the less developed countries. This helps in such a way that the developing countries cope up with certain standards of those countries and apply them to their own. This, as a result, leads to improved quality of labor on a wide geographical region of developing …show more content…
Some strategies that these chains use may have a good impact on labor standards or a bad one. A firm may deploy a strategy to pay all its labor equally without considering the geographical location they come from. This strategy may not be a good one because of the firm’s distribution. A firm may be having, different branches all over the world and paying them equally may not be fair. For example, a Barclays bank worker working in Europe can’t be paid equally with a worker in Africa. This is because countries have different economies and the best way is to standardize the salary in relation to the standard of living of the respective country. In summary, a country with such a strategy will have bad labor standards. A strategy should always be in favor of the labor force in the geographical area a commodity chain
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).
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
On the other hand, it is viewed as a horrific way to abuse individuals in different countries by paying them tremendously trifling wages, working in strident conditions, and overall being treated inadequately by the factory owners. United States corporations exploit different countries around the world such as, China, Indonesia, Mexico and
product chains in the UK as well as making a lot of profit on there
Sweatshops increase the standards of living for the workers and their communities. The comparison between working conditions in the United States against
American companies purposely make their goods in other countries such as India because their labor practices do not meet US standards and can easily be manipulated for maximum profit. By paying their employees extremely low wages, they are still able to manufacture their products. As a result they pull out more profit that does not have to be given back to their employees due to minimum wage laws not being in effect in these countries. In “Distributional Effects Of Globaliz...
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Globalization and industrialization contribute to the existence of sweatshops, which are where garments are made cheaply, because they are moving production and consumption of those cheap goods. Industrialization has enabled for global distribution, to exchange those goods around the world. They can also set apart the circumstances of consumption and production, which Western countries as mass consumers, are protected from of producers in less developed countries. These factories are usually located in less developed countries and face worker exploitation and changes in social structures. Technological innovation allows for machines to take the place of workers and do all the dirty work instead of workers doing hours of hard work by hand.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
The practice of trading and bartering of commodities has been around since the beginning of time. The concept of commodity chains was developed by Terence Hopkins and Immanuel Wallerstein in an attempt to understand the spread of capitalism and economic change. (Bair & Werner, 2011) The emergence of capitalism has brought about an anthropogenic phenomenon know as globalization as a means to create profit and in doing so altered competitive dynamics (Gereffi 1999). Globalisation of economies has lead to the construction of chains of production, distribution and consumption transcending borders across the world. Gereffi (1994) identified these chains as Global Commodity Chains, using them as a method to analyze the global economy.
Finally, according to Schulling and Lambin (2003) there are two ways on which the companies can become global. The first case are the companies that started as ‘local brands’ and due to the success they became ‘global’. And the second one, the brands launched in a specific market environment.
There has been increased the outcry by international labor organizations accusing multinational companies of foul play when dealing with their workers. Many multinational companies, in a bid, to reduce operation costs and costs of production, end up suppressing their clueless workers. Some multinational companies have gone to the extent on having their central productions being done in low-income earning companies where they would not have many responsibilities to bear for the workers. Coca-Cola, however, has received widespread criticism for its mistreatment of workers and the way it has...
For examples, the shirt that we wear was made in Taiwan and the shoes was made in China are related to globalization. Globalization give a chance to countries move closer to each other. People, companies and organizations in different countries can stay and work together. However, globalization contains disadvantages too. Globalization will cause unemployment in some countries because firms would move their factories to places where they can get cheaper workers to reduce their cost. Globalization may lead environmental problems more serious. For example, a company may want to build their factories in other countries because the environmental laws are not as strict as they are at home
International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.
With globalization, the consumers had a chance of not only buying quality products from different parts of the world, but they were also able to choose the products that they perceived as the highest quality. With the implementation of globalization, the customers were not only expecting more from the products that they were consuming from their countries, but also required the local products to match up with the quality of international products. Globalization has enabled customers to accept the high quality of the products they consume and realize the value of their money at all