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Positive impacts of MNCs in developing countries tutor2u.net
Positive impacts of MNCs in developing countries tutor2u.net
The challenges of mncs to developing countries
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Imagine you only earn 12-14-cent-an-hour for your hard work, imagine you work with toxic chemical glues, paints and solvents everyday. Multinational Corporation is a company that make and sells a product in more than one country. Multinational Corporation are harmful because of bad working condition, low wage and long hours, bad future and life.
Multinational corporations are harmful because they have bad working conditions. According to Sweatshop Fact sheet, workers who work for J.C Penny are beaten and eat the bad food in America Samoa. It¡¯s important because workers should not get beaten for work. It harms workers babies and workers don¡¯t get expectation. Even the police cannot beat up a criminals. How could factories beat the workers? Eating bad food is not good for workers¡¯ health. They will get sick easily. Workers work without human rights. According to Toys of Mystery, a report on The Toy Industry in China, the toy factory workers need to handle toxic chemical glues, paints and solvents. They don¡¯t know those chemicals and just let the chemicals destroy their health. It¡¯s important because workers will easily get sick and may get cancer. They will die faster than the other people. According to David Bacon of The Story of a Maquiladora Worker, the maquiladora workers get a lot of psychological pressure from their bosses. it¡¯s important because workers not only exhausted themselves physically but also psychologically. Workers all the time. For their whole life, they might live unhappy, but don¡¯t know how to change this situation. Too much pressure will drive workers crazy. As a result, multinational corporations have a bad working condition and workers get sick in body and in mind.
Multinational Corporations are harmful because workers have low wages and being tortured and exhausted by the long hours work.
According to Global Exchange, an investigation shows that 68% of workers don¡¯t earn enough money to save or support themselves and their families in China. It¡¯s important because Nike¡¯s workers work for a extraordinary low wages. It can never help workers get a better life under multinational corporations. They are still keeping poor. According to Sweatshop Fact Sheet, in Indonesia, the wage is just only enough to buy basic needs for one person. It¡¯s important because it¡¯s hard for workers to feed their kids and go out with their family or friends to have some entertainment. Workers live in a hard life.
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.
Most objections to anti-sweatshop action stem from the idea that sweatshop jobs are the best opportunities available to people living in poor conditions. “They keep coming back day after day, so they must want these jobs.” Trying to make the jobs better will simply me...
Nike, as many other companies do, facilitates production in other countries to help grow sales in those particular regions. The main difference between Nike and some of the other companies is that other companies do not support the exploitation of labourers or human rights. Not to suggest that Nike promotes labour exploitation, but they are less strict about these rules than other companies in foreign markets. Impacts on health and safety are a major factor for employees in sweatshops. However, physical and sexual abuse is another serious concern of many of the sweatshop workers. Most of the sweatshops run by Nike contractors are factories located in relatively small spaces to save on real estate costs. They are often soiled with dirt and kept unheated to save on expenses. Broken glass and dangerous equipment is left on the floors causing potential dangers to any people scattered within the factory. Employees are subject to harassment and violent punishments if work is not being completed as thoroughly and efficiently as the contractors would like. Workers slave under unfavourable conditions for up to 14-hour days often with no breaks. These employees are paid less than $100 US and work on average over 250 hours per month. "Substandard wages keep factory workers in poverty and force them to work excessi...
Sweatshops are factories that violate two or more human rights. Sweatshops are known in the media and politically as dangerous places for workers to work in and are infamous for paying minimum wages for long hours of labour. The first source is a quote that states that Nike has helped improve Vietnamese’s’ workers lives by helping them be able to afford luxuries they did not have access to before such as scooters, bicycles and even cars. The source is showing sweatshops in a positive light stating how before sweatshops were established in developing countries, Vietnamese citizens were very poor and underprivileged. The source continues to say that the moment when sweatshops came to Vietnam, workers started to get more profit and their lives eventually went uphill from their due to being able to afford more necessities and luxuries; one of them being a vehicle, which makes their commute to work much faster which in turn increases their quality of life. The source demonstrates this point by mentioning that this is all due to globalization. Because of globalization, multinationals are able to make investments in developing countries which in turn offers the sweatshops and the employees better technology, better working skills and an improvement in their education which overall helps raise the sweatshops’ productivity which results in an increase
There are lots of sweatshops established in developing and less developed countries such as China and India. The main reason is the labor costs in those countries are much lower than developed countries. Due to the huge population in China and India, the wages will stay low in long term. Most of the workers are uneducated and unskilled, and they have to accept the low wages in order to pay for their daily necessities. The multinational companies like Apple Inc., IBM, H&M, Nike opened factories or outsourcing their products in China. These are unethical factories. A lot of people criticize the owners of these factories. However, all things are created by the demand. If sweatshops were useless, then they wouldn’t develop. Corporations want low
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
Large corporations seeking the extra dollar to pocket are willing to spend whatever it takes to reduce the cost of production and increase profit margins. Doing whatever it takes in some instances can help men moving operations overseas to developing countries who are glad to be working. These developing countries unemployment rates are extremely high, so any job that pays is great to have. Americans lose jobs to foreign workers because the American economy is one of the largest in the world and its citizens enjoy great standards of living, when juxtaposed with a city of the same size in Taiwan. Labor costs play a huge and crucial role in corporations, which in turn pay the profits to the corporate giants who run, manage, and own the businesses.
Americans do not realize the amount of clothing we wear on a daily basis is actually made in Cambodia, such as Adidas and even the Gap. The women that work for these sweatshops in Cambodia sew for 50 cents an hour, which is what allows stores in America, such as H&M to sell inexpensive clothing (Winn, 2015). The conditions these Cambodian workers face are a noisy, loud, and extremely hot environment where people are known for having huge fainting attacks. When workers were on strike a year ago, authorities actually shot multiple people just because they were trying to raise their pay. There is plenty of evidence of abuse captured through many interviews of workers from different factories, and is not just a rarity these places see often or hear of. Factories hire children, fire pregnant women because they are slow and use the bathroom to much, scream at regular workers if they use the toilet more than two times a day, scam hard working employees with not paying them their money they worked for and more, and workers are sent home and replaced if 2,000 shirts are not stitched in one day. Expectations are unrealistic and not suitable for employees to be working each day for more than ten
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
The use of sweatshop in multinational companies has become a common practice around the world. The main reason is because it could maximize profit by overseas manufacturing with lower labour costs. According to Skarbek et al (2012, p.556),the sweatshop is a factory in the developing country which employ the low wage labors in the poor working environment to produce goods for multinational enterprises. The proponent of sweatshop claimed that based on consequentialist approach, sweatshop has given a positive impact on the welfare of developing countries included workers and even future generations
These concerns typically include the rights of the children, the responsibility of the parents and employers, and the well-being and safety of the children. In Stefan Spath’s “The Virtues of Sweatshops,” it is made very clear that he, like many others, feel that the general public is highly misinformed on what sweatshops are and what they actually contribute to their respective communities. In the eyes of someone from a developed country, sweatshops and child labor that takes place in them seem primitive and are interpreted as simply a means by which companies can spend less money on employers. He states that when labor unions claim that companies which establish operations in developing nations create unemployment in America, they aren’t really explaining the whole story. The author claims that those who are adamantly protest sweatshops are only telling half the story with a claim like this. He points out in this part that the American people can rest assured that high skilled jobs will not be taken over to developing countries because “– high-skilled jobs require a level of worker education and skills that poorer countries cannot
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...
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...
Mira Wilkins defines a multinational enterprise (MNE) as a “firm that extends itself over borders to do business outside its headquarters country.” By 1870, a period denoted as industrial capitalism, MNCs started to evolve and the nature...