...Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat? Benjamin Powell David Skarbek Independent Institute Working Paper Number 53 September 27, 2004 100 Swan Way, Oakland, CA 94621-1428 • 510-632-1366 • Fax: 510-568-6040 • Email: info@independent.org • http://www.independent.org Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat? Benjamin Powell and David Skarbek• Department of Economics San Jose State University San Jose, CA 95192-0114 benjamin.powell@sjsu.edu ABSTRACT Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists critical of sweatshops have responded that multinational firms’ wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers. Benjamin Powell is an Assistant Professor of Economics at San Jose State University and the Director of the Center for the Study of Entrepreneurial Innovation at the Independent Institute. David Skarbek is an economics major at San Jose State University and intern at the Independent Institute. The authors thank Jeffery Hummel, Charles Murray, Larry Pratt and Edward Stringham for helpful comments...
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...Exploitation of Workers In China: Analyze with suicides of Foxconn Abstract As globalization affected the whole world, the contradiction between leaders and labors has become a world-wide problem. In China, a series of employees’ suicides attracted the public and media’s concentration to consider this problem. A Taiwanese electronics corporation, is acting as the protagonist in this issue and now earning an internationally notorious reputation of running sweatshops. This paper analyze the cause of ongoing trend of exploitation of workers in China with the example of Foxconn, and examine the reasons behind those suicides from the perspective of management, workers and related laws. Based on the fundamental information of China, to illustrate my own analysis about this case from ethical and legal point, and to criticize Foxconn’s management strategy, labor relations and the gaps of Chinese laws. Keywords: workers’ exploitation, China, Foxconn, suicides, management, laws Introduction In the three components of business market, producers, retailers and consumers, corporation is the most common for managers to execute economic activities. The two elements involved in corporation are employers and employees. However, when compared with employees’ welfare, managers prefer to choose maximum profit as their prime selection. In the Marxist theory, this act of utilizing and maximizing employees’ labor to gain more profit without providing them with the equal compensation that...
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...Situation of Germany 2 2.1 The Conditions of Germany 2 2.2 The Conditions of Companies 2 3. The Informations about Adidas 3 4. Statement of the Problem 3 4.1 2012 "Shackle" Sneakers 4 4.2 Sweatshops and Labor Rights Violations 4 4.3 The Effect of the Problems 5 5. Significance of the Research 6 5.1 The First Point 6 5.2 The Second Point 6 5.3 The Third Point 6 6. Scope and Limitations of the Study 7 6.1 Boundaries of the Research 7 6.2 The Solving Methods of the Issues 7 7.1 Questions of the Research 7 7.2 Objectives of the Research 7 8. Conclusion 8 摘要 葛兰素史克公司中国研发中心副总裁鲁白认为，创新是一种用充满想象力的方法来解决问题的能力。想象力是人类创新的源泉。如何提高创新？正当今时代,科技知识创新、传播、应用的规模和速度前所未有,科学研究、技术创新、产业升级一体化发展态势更加明显。增强自主创新能力是发展科学技术的战略基点,是调整产业结构、转变发展方式的中心环节。我们必须把科技创新作为持久动力,以创新促转型,以转型促发展,大幅度提高科技进步对经济增长的贡献率,加快实现经济发展从要素驱动向创新驱动的转变。 关键词：企业创新能力 技术创新 科技创新 基础研究 Abstract The vice president of China research and development center of GlaxoSmithKline LuBai thinks: Innovation is skill that use an imaginative way to solve problems. Imagination is the source of human innovation. How to improve the innovation? In this century, technology innovation, spread, the size and speed of the application, they have never seen before. scientific research, technological innovation, industrial upgrading integration trend is more obvious. Enhance the independent innovation ability is the base point of the development of science and technology, is to adjust...
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...Assignment 1.2: research Paper Industrialization after the Civil War Industrialization after the Civil War Introduction This paper discusses the effects the Industrial Revolution had on the economy, politics, and society. Also this paper will talk about five different groups affected by the Revolution. In addition, this paper reviews the effects the Industrial Revolution had on the average working American. The Industrial Revolution brought many changes to America as a whole; it seems as though no stone was left unturned. The Revolution affected everything in its path, including government, people, and way of life in general. Three Aspects of the Industrial Revolution Three aspects of the Industrial Revolution include society, the economy, and politics. The American economy began to change during the Industrial Revolution; this change was mainly due to the increase of productivity. Productivity increased by using the out work system. This system consisted of people completing jobs in their homes (Economic Growth and the Early Industrial Revolution). Another way the economy changed was through the factory system. This system allowed a large scale of work to be completed in one location (Economic Growth and the Early Industrial Revolution). Society was another aspect that changed through the Industrial Revolution. Society went through two major transitions during the revolution. One of the major changes was that many Americans left farming, and went to find jobs...
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...Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on recycled, acid-free paper containing 10% postconsumer waste. 1 2 3 4 5 6 7 8 9 0 QDB/QDB 1 0 9 8 7 6 5 4 3 2 1 ISBN 978-0-07-811257-7 MHID 0-07-811257-5 Vice President & Editor-in-Chief: Brent Gordon Vice President, EDP/Central Publishing Services: Kimberly Meriwether-David Editorial Director: Paul Ducham Managing Developmental Editor: Laura Hurst Spell Developmental Editor: Jane Beck Associate Marketing Manager: Jaime Halteman Project Manager: Erin Melloy Buyer: Kara Kudronowicz Design Coordinator: Margarite Reynolds Cover Designer: Studio Montage, St. Louis, Missouri Cover Images: Top to bottom, © Mark...
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...6. Social Responsibility & NGO’s Gursharn Dhugga In this report you will learn about the corporate social responsibility of Peru, business ethics, ethical issues in international business and Non-Governmental Organizations in Peru. Corporate Social Responsibility & CSR in Global Companies Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner. Corporate Social Responsibility in the Mining Sector in Peru seeks to take a first step towards meaningful dialogue about CSR among the different actors involved to help civil society obtain the highest benefits from CSR policies and actions implemented by government and corporations. A legislative proposal on the topic of corporate social responsibility was introduced in Peru in 2005, but it was never implemented and thus there is still no legislation governing CSR in Peru. Small businesses who deal domestically tend to place much less emphasis on operating responsibly than the major companies who rely mainly on exports. Most CSR initiative in Peru seems to come from international organizations and intermediaries; the Swiss AVINA, Kellog, Interamerican, and Ford Foundations are all examples of the attempt to raise CSR awareness. Benefits of CSR Peru’s rapid economic expansion has helped to reduce the national poverty rate by almost 15%, but 44.5% of the population still live below the poverty line....
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...EXECUTIVE SUMMARY Readymade Garments Industry is the leading foreign currency earning sectors of Bangladesh. Now-a-days Bangladesh financial sector is very much dependent upon this sector. The annual export income of garments sector is driven from two sources one is woven garments and others is knit wear. Redimet garments is a 100% export oriented garments. Redimet garments exports various garments product in foreign market. The company makes shirts, ladies dress, shorts, trousers, and others for U.S.A, U.K, Europian countries countries. They use high tech machineries to produce a quality garments product. They also add new machineries to increase their production line. They have a mission and the vision is profit maximization. The merchandising philosophy of Redimet garments is to keep good relation with their buyers. The garments Industry maintains a good relationship with every buyer. Hard working and commitment maintenance is their main strategy. They always try to satisfy their buyers. In this perspective the merchandiser always try to do their merchandising activities in due time. The merchandiser of this company is not very much skilled person. More over him has no assistant. For this reason Sometimes the company face problem. So, here Redimet garments can recruit high skilled people with giving high salary. The Redimet garments should improve their product quality, packing system, internal environment, and other merchandising activities to satisfy their foreign buyers...
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...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms between 2012 and 2015; by 2025, China is likely to be the world's largest economic power by almost any measure. The extrapolations are supported by two types of considerations. First, China’s growth patterns of the past 25 years since the beginning of economic reforms match well those identified by standard economic development and trade theories (structural change, catching up, and factor price equalization). Second, decomposing China’s GDP growth into growth of labor and other variables, the near-certain information available today about the quantity and quality of Chinese laborers through 2015, if not several years after, allows inferences about future GDP growth. Short of some cataclysmic event, demographics alone suggests China’s continued economic rise. If talent is randomly distributed in the world population and if agglomeration of talent is important, then the odds are strongly in China’s favor. Introduction The rapid economic growth of China since the...
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...another, economists, union officials, and small manufacturers took the microphone to describe the devastation Chinese competitors are inflicting on U.S. industries, from kitchenware and car tires to electronic circuit boards. These aren't stories of mundane sunset industries equipped with antiquated technology. David W. Johnson, CEO of 92-year-old Summitville Tiles Inc. in Summitville, Ohio, described how imports forced him to shut a state-of-the-art, $120 million tilemaking plant four football fields long, sending Summitville into Chapter 11 bankruptcy protection. Now, a tenfold surge in high-quality Chinese imports at "below our manufacturing costs" threatens to polish Summitville off. Makers of precision machine tools and plastic molds -- essential supports of America's industrial architecture -- told how their business has shrunk as home-appliance makers have shifted manufacturing from Ohio to China. Despite buying the best computer-controlled gear, Douglas S. Bartlett reported that at his Cary (Ill.)-based Bartlett Manufacturing Co., a maker of high-end circuit boards for aerospace and automotive customers, sales are half the late-1990s level and the workforce is one-third smaller. He waved a board Bartlett makes for a U.S. Navy submarine-detection device. His buyer says he can get the same board overseas for 40% less. "From experience I can only assume this is the Chinese price," Bartlett said. "We have faced competition in the past....
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...Running Head: Nike, Inc. Nike, Inc. Case Study Adelaide A. Odoteye FIN 586 – Dr. Cullers Fall 2006 The brand name “Nike” is one of the most readily recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the ubiquitous Nike “swoosh” and compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not all of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, in the U.S.A. alone, consumer spending on athletic footwear increased by 10 percent during the first six months of 2005 (Quinn, 2006). Consumers were not just professional athletes, but ordinary men, women, and...
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...UNETHICAL BUSINESS PRACTICES OF WALLMART AND NIKE INTRODUCTION Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart. It is also one of the world’s most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Wal-Mart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s,...
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...16 Works Cited Page 3 Page 18 Human Trafficking 3 Executive Summary: This paper was written to help educate people on the horrors of this extremely profitable organized crime. Human trafficking is defined as the recruitment, transporting, or harboring of people for the purposes of slavery, forced labor, or sexual exploitation. There are two different types of human trafficking: labor trafficking and sex trafficking. Sex trafficking is the sale of women and children for prostitution and other forms of sexual exploitation. Sex trafficking is a lot more common than labor trafficking; labor trafficking is recruiting, transporting, or obtaining a person for labor or services. Human trafficking is a serious problem all around the world. In this paper I focused on trafficking in India, China, and the United States....
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...Globalisation describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture. Definitions An early description of globalization was penned by the American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897. However, it was not until the 1960s that the term began to be widely used by economists and other social scientists. It had achieved widespread use in the mainstream press by the later half of the 1980s. Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations. The United Nations ESCWA has written that globalization "is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable...
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...system has not been copied by any competitors which gives Zara a great competitive advantage. With its own production and distribution channels, Zara specializes in quick fashion innovations based on customer changing needs and is known to develop a new product or design and have it on store shelves in less than a month. Competition will generally do this same task in about 6 to 9 months. This competitive advantage has helped Zara to become a fashion leader and always stay a step ahead of competition. This also allows Zara to copy competitor new designs and come out with a slightly deviated version in just a couple weeks. This has competitors distraught as they spend enormous amounts of money on research and design just to have it instantly copied without costing Zara anything in research costs. This business model has allowed Zara to recently produce 11,000 distinct items in a recent year and several hundred SKUs given variation in color, fabric and sizes. This is compared with 2,000-4,000 items for key competitors. They were able to achieve this by shipping products directly from their central distribution center to well-located, attractive stores twice a week, eliminating the need for warehouses and keeping inventories low as possible. Zara has a policy of not keeping any items in...
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...Contents Preface Prologue: We have it Made Part I: The Mission Chapter 1: A Consumer Goes Global Chapter 2: Tattoo’s Tropical Paradise Chapter 3: Fake Blood, Sweat, and Tears Part II: My Underwear: Made in Bangladesh Chapter 4: Jingle these Chapter 5: Undercover in the Underwear Biz Chapter 6: Bangladesh Amusement Park Chapter 7: Inside My First Sweatshop Chapter 8: Child Labor in Action Chapter 9: Arifa, the Garment Worker Chapter 10: Hope Chapter 11: No Black and White, Only Green Update for Revised Edition: Hungry for Choices Part III: My Pants: Made in Cambodia Chapter 12: Labor Day Chapter 13: Year Zero Chapter 14: Those Who Wear Levi’s Chapter 15: Those Who Make Levi’s Chapter 16: Blue Jean Machine Chapter 17: Progress Chapter 18: Treasure and Trash Update for Revised Edition: The Faces of Crisis Part IV: My Flip-Flops: Made in China Chapter 19: PO’ed VP Chapter 20: Life at the Bottom Chapter 21: Growing Pains Chapter 22: The Real China Chapter 23: On a Budget Chapter 24: An All-American Chinese Walmart Chapter 25: The Chinese Fantasy Update for Revised Edition: Migration Part V: Made in America Chapter 26: For Richer, for Poorer Update for Revised Edition: Restarting, Again Chapter 27: Return to Fantasy Island Chapter 28: Amilcar’s Journey Chapter 29: An American Dream Chapter 30: Touron Goes Glocal Appendix A: Discussion Questions Appendix B: Note to Freshman Me Appendix C: Where Are You Teaching? Acknowledgments Copyright © 2012 by Kelsey Timmerman...
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