Econbitc Essay, Research Paper
Womans and the Global Assembly Line & # 8211 ; favoritism adult females work forces concern jobQuestion # 1: Womans and the Global Assembly LineA ) Discuss the multi-faceted grounds ( political, societal, etc. ) why womenin developing states might be willing to work for lower rewards andunder more burdensome conditions? In today s planetary market place, adult females are going more recognizedas a labour force. In the yesteryear, it has ever been work forces who were thebreadwinners. Today, due to assorted societal, political, and economicreasons, adult females are going the primary breadwinners in less developedcountries. This sounds like an encouraging statistic to adult female s rightsgroups around the universe. However, these adult females are being exploited, instead than appreciated. They are being exploited by multi-nationalcorporations, which relocate their fabrication sectors to LDC s. Inthe LDC s, MNC s are able to happen lower labour costs and hence, lowerproduction costs. Because it is assumed that adult females are economically dependent on work forces, their efforts to derive entree to occupations are often seen as agencies tosupplement the income of a male caput of family. Therefore, thedifferentials in the rewards earned by work forces and adult females are frequently a reflectionof the belief that work forces should gain more because they have households tosupport, while the latter simply add to the additions of hubbies andfathers. ( Fernandez-Kelly, p. 88 ) Managers justify paying adult females workers less by conceive ofing that adult females aremerely secondary pay earners in their households. They assume that work forces & # 8211 ; as male parents and hubbies & # 8212 ; are the breadwinners. & # 8217 ; This presumptionprevails non merely in popular thought, but in the statistical studies ofbodies such as the national nose count agency, the World Bank, anddevelopment bureaus. ( Enloe, p. 162-3 ) There are many other factors that contribute to the exploitationof adult females. The state of affairs of adult females in labour markets bears greatresemblance to that of migrators. Fernandez-Kelly believes in both casesindividuals enter the labour force without a legitimizing political orientation thatpromotes their just intervention ( p. 88 ) . Migrant workers arerestricted in that they are working illicitly, therefore they mustcompromise with lower rewards. Womans are restricted in the above breadwinner doctrine, hence, they must compromise with lowerwages besides. When they get occupations, the members of both groups are oftenseen with intuition and ill will, as it is presumed that they competeunfairly against the members of a preponderantly male working category. Single adult females are frequently exploited the most. Directors frequently seeyoung individual adult females in visible radiation of the matrimony factor, & # 8221 ; which they use tosuppress rewards. & # 8230 ; the individual adult female is non a serious member of the labour force becauseshe intends to work merely until she finds a hubby and settees down, & # 8217 ; supported by him. Therefore, she does non necessitate to be paid as if she werea calling worker. ( Enloe, p. 164 ) This belief by directors is prevalent in about all LDC s where MNC soperate. It is their justification of their development. Womans are willing to work for these low rewards because they haveno other pick. The universe is altering quickly, and many states aregoing through the industrial revolution that the US went through in thelate 1800 s. However, engineering is much more sophisticated, due to theintervention of foreign companies. The work forces in these LDC s are oftenunable to obtain labour places because they are unskilled. The menthat are employed are frequently educated, and they work in thesupervisory-management sector. The unskilled, assembly-line work is leftto the adult females of the state. The older adult females are unable to carry through thejob demands because of their deficiency of staying power, and they frequently remainat place to raise the household s kids. In most LDC s, two to threegenerations live together & # 8212 ; merely as a agency for endurance. This leavesno one else to be the breadwinner, but the immature girl or married woman. Noone else is qualified, because the corporations are able to pay adult females thelowest rewards. Since they are able to warrant paying immature, individual womenthe lowest rewards, they are the lone 1s they hire. And hence, sincethe immature adult females are the lone 1s qualified to be the breadwinners, they must accept their pay and burdensome conditions to last. B ) Discuss the effects of this employment form on work forces and adult females indeveloping states. Womans are quickly displacing work forces in unskilled labour. It is notsimply because they are better, non because they are more efficient & # 8211 ; but because they are willing to work for lower rewards. They have nochoice but to work for low rewards, as I have described above. Sincecorporations are engaging largely adult females for fabricating places, this isdisplacing much of the male working-population. Education and skilledlabor are non revered in LDC s as it is in the US. Citizens of LDC s donot have the chance for instruction to get a accomplishment. Many childrenmust Begin working when they are still immature, merely to supply for theirfamily. Children and immature adult females are being forced by political, economic, and societal factors to work for their households. Politically, the authoritiess of LDC s are promoting foreigninvestment because they need the industry, the income, the occupations. Multi-national corporations are taking advantage of the LDC s low-costlabor and traveling their fabrication sectors to the LDC s. The primaryaspect which LDC s possess is low-priced labour. Many MNC s ( in thetextile, electronics, and dress industries ) are labor-intensiveindustries. Since labour costs are such a big part of theirexpenses, cheaper labour is a immense inducement for MNC s to relocate. Therefore, the authoritiess of LDC s work with corporate directors to keepwages low. Economically, LDC s need foreign investing to last. Manyfamilies do non hold plenty to eat, and unskilled labour is difficult to happen. Sons and girls are excessively busy working for the household s public assistance to goto school. Therefore, they will excessively be characterized as unskilled labour. Any occupation is a approval, so many immature people ( with high staying power ) areforced into these fabricating occupations, merely to supply for theirfamilies. Socially, there is a job in historical constructs. Women inThird World societies have historically been the home-makers and themothers. They ne’er needed to work outside of the place because theyalready had a breadwinner, their hubby. Many adult females are basking thisnew found freedom to work. Womans now have the chance to gain theirown income. Much is made of the fact that adult females can now pass money onclothes, cosmetics, jewellery and amusement. ( Fernandez-Kelly, p. 133 ) Now that adult females have the chance to be the breadwinner, they are ableto make their ain determinations. This once more strengthens adult females s freedom, doing another inducement to work. These political, economical, and societal factors are altering theworkforce of many LDC s. Many work forces can be seen in urban countries withoutjobs. There merely are non occupations available for them. The governmentshave no money to develop infrastructure-building occupations. It may bepossible that LDC s will get down to develop substructure one time theyacquire adequate capital, but to get capital, they must let MNC s toexploit their women-dominated labor-force. C ) Discuss the obstructions confronting these adult females in asseverating their rights toform brotherhoods and to procure better rewards and working conditions. Womans are frequently discriminated against in today s workplace. Since they have merely late entered the occupation market, it is hard forthem to acquire the regard they deserve. Men discriminate against thesewomen because they are displacing them and taking their occupations. It is hardto like person when they are endangering to your occupation. However, I seewomen as a motivation factor, arousing work forces to heighten their accomplishments to bethe most qualified. In 3rd universe states, this is non the motivatingbehind favoritism of adult females. MNC s are merely in dialogues withthe authorities to stamp down adult females and workers rights so they willcontinue to work in under their present conditions. The authoritiess tryto keep rewards every bit low as possible. The authorities must so supportwhatever the corporations want so they will stay in the LDC. It is really hard for adult females in LDC s to organize a brotherhood. If theyare suspected of draw a bead oning to organize a worker & # 8217 ; s brotherhood, they will be fired orpunished. They are in despairing demand of their occupation to last, beingfired is their worst fright. Therefore, they frequently suppress their opinionsabout their on the job conditions and travel on working under the Fe manus ofthe corporations. Question # 2: Free TradeA ) Present briefly but carefully the cardinal points of the neoclassicalcase for free trade. Neoclassic economic experts believe that free trade is best. It isquite simple to see their statement. If a state is endowed with certainadvantages ( i.e. engineering, land, labour ) it should use thoseadvantages to their extreme capacity. For case, allow us compare theUnited States, which is more efficient in the production of computing machines, with Mexico, which is more efficient in the production of vesture. Before trade, the US will bring forth an equal figure of units of clothingand computing machines. The state of affairs is besides the same in Mexico, they willproduce equal sums of each. After trade, the US will bring forth morecomputers and export them to Mexico in exchange for vesture, which ischeaper to purchase from Mexico than it is to bring forth in the US. Mexico will
to the antonym, by bring forthing more vesture, exporting them to the US, and importing computing machines that are cheaper to purchase than to bring forth. If people could work in merely one industry and business, so freetrade would so prevent keeping American rewards much above ( Mexican
) levels if (Mexican) workers were as good as Americans . . .But, in fact there are many industries and occupations. If Americaconcentrates its employment in the industries and occupations it doesbest, American wages can remain far above (Mexican) wages for a long time– even though the two nations trade freely. (Blinder, p. 114) Through the previous illustration, it is easy to see that freetrade allows for specialization, which in turn leads to an increase inefficiency. This is because as a country becomes more accustomed toproducing one product, rather than two, it becomes better (or morespecialized) at it. The larger the market, the more specialized itwill become. (DeMartino, Oct. 23) This is due to the increased need toproduce certain products which the country is more efficient atproducing. Another aspect of the Neoclassical view is that wages aredirectly correlated with productivity (DeMartino, Oct. 30) That is, asproductivity increases, wages will increase also. Proof of thisphilosophy is represented by the United States workforce. US workers arehighly productive, due to many factors, and therefore receive higherwages than workers in LDC s. So in general, neoclassical economistsbelieve that free trade promotes specialization; increases the size ofthe market and altogether promotes efficiency. B) Present the arguments that are sometimes made in favor ofprotectionism, and the neoclassical rebuttal to these arguments. Protectionism is a very controversial topic in the US today. High-cost producers, who would otherwise succumb to competition, areable to survive. Most foreign countries today have protectionistpolicies against the US. That is, they have high tariffs to protecttheir industries from our lower prices. Three characteristics in supportof protectionism are: 1. It is very politically popular. 2. The benefits are concentrated. 3. The consequences are widespread, diffused, and very small percapita. (DeMartino, Nov. 5)Domestic firms and politicians are generally the most supportive ofprotectionism. Firms doing business here in the US support it becauseprotectionism raises prices of imports, making them more expensive thandomestic goods. Therefore, US goods are in higher demand due to lowerprices. Politicians often support protectionism to obtain votes. Votesare cast by citizens who are ignorant of the long-term effects ofprotectionism. They think that it is better to buy American. If foreignproducts prices are lower, people are encouraged to buy foreignproducts. Therefore, through protectionism foreign products prices arehigher than American prices and people are encouraged to buy American. When looking through the eyes of the Global Marketplace,protectionism is bad… First, trade restrictions allow high-cost producers, who would otherwisesuccumb to competition, to survive. Thus protectionism is a peculiarform of welfare for corporations that not only raises prices toconsumers, but also make American industry more slovenly and lessproductive. (Blinder, p. 118)The weakest firms and industries are always the ones who cry forprotectionism. They cannot compete in the global marketplace due tofactors such as: high labor costs, high administrative costs, or highoperation costs in general. In other countries it may be cheaper toproduce the same product, thus the US firm cries for help from thegovernment so as to make them more competitive. Second, the costs of protectionism spill over into other industries. Ironically, one factor contributing to the plight of our auto industry in1981 was that the US government was protecting a variety of industries –like steel, textiles, and ball bearings — that sell their wares toautomobile manufacturers, thereby foisting high costs on our autoindustry . . . the consumer pays for them all. (Blinder, p. 118) However, many firms are ignorant of this phenomenon. They aremore worried about their own well-being, rather than the US as a whole,or even their industry. We must remember that profit is the primarymotivation, and your own gain is often a result of someone s loss. Today s business world is a cut-throat marketplace, many firms andindustries must do everything in their power to stay alive. They cannotlook at their long-term positions because they are struggling to survivein the short-term. Many industries are strong enough to look into thelong-term (i.e. computers), but many are unable. Thirdly, foreign nations do not always stand idly by while we protectour industries. When we slapped a quota on textile imports from China in1983, the Chinese reacted by reducing their imports of American chemicalsand farm products. When we raised the duties on specialty steel importedfrom Europe in 1983, the Common Market countered by imposing traderestrictions on American rifles, burglar alarms, and skis among otherthings. (Blinder, p. 119) This shows that protectionism may superficially seem harmless athome, but abroad it is affecting prices of imports. It is all a cycle,showing that protectionism does nothing but hurt the economy as a whole. Once again you can see that the narrow-mindedness of US firms ends uphurting the economy as a whole. Global competition must be establishedover a long period of time. We must seek to understand the long-termgoals of the global economy. Finally, the little-understood effect of trade barriers on the value ofthe dollar may be the most basic reason for rejecting protectionism, forit suggests that we protect some industries only by jeopardizing others .. . Thus, when all is said and done, protecting favored Americanindustries from foreign competition winds up subjecting unfavoredindustries to even more fearsome foreign competition. (Blinder, p. 119) To illustrate this phenomenon, I will relate the followingscenario. Suppose we are successful in restricting imports. Americansspend less on foreign goods, and so fewer dollars are offered for sale onthe world s financial markets. As the dollar becomes scarcer, its pricenaturally rises relative to other currencies. At that point theunprotected industries start to suffer,. because a higher dollar makes USexports more expensive to potential foreign customers. American exportsthen sag. C) Evaluate the debate over protectionism (i.e. is the neoclassical caseagainst protectionism compelling? Why/why not?) I think protectionism will exist into the future. Corporationsare very successful at motivating the government to help them profit. Protectionism is also viewed by many as good, mainly because they do notfully understand the global economy. It is very difficult to take a stepback and view the long-term effects when we, as a society, live in theshort-term. Proof of being a short-term society is seen in our vastexploitation of credit. Americans use credit for everything, fromcollege to lunch — anything goes. What the US needs to get away from protectionism is TradeAdjustment Assistance. This could entail any of the following: 1. Income Protection (DeMartino, Oct. 30). This would entail asort of program to keep wages high for American workers, regardless offoreign competition. Global competition would eventually evaporate thisprogram because it would no longer be needed. Global competition willone day make items in Singapore competitively prices with a similarproduct in the US. 2. Training (DeMartino, Oct. 30). To educate workers to keep upwith technology and the workings of the world. Through wide-scaletraining and education, the problem of ignorant workers would beeliminated. They could then see the bigger picture, the importance ofgoals for the long-run, and they could see the importance of workingtogether as a nation to promote the economy. 3. Business Adjustment Assistance (DeMartino, Oct. 30). Thiswould entail a program helping to cut productivity costs. Businesseswould then be able to compete with the lower-wage factor of LDC s. Thistype of program would also evaporate with global competition since wagesand prices will eventually equal out all over the globe. That is, if acountry is going to be competitive in the global marketplace, they mustoffer comparable prices and wages (i.e. prices and wages similar to theones found in the US). 4. Relocation Assistance (DeMartino, Oct. 30). This isnecessary for workers to prevent such occurrences as Flint, MI. In anideal world, free mobility of labor is good. However, it is verydifficult for many workers to mobilize from their current locations. Many have families, some are held by family tradition, financial reasons,and culture will always affect mobility. Thus, the government mustinstitute a program to assist in free mobility of labor. It is adifficult program to enact, but could include such aspects as financialassistance, family counseling, and a sort of assistant to help the familyadjust to the move (i.e. finding schools for children, finding work forother members of the family). Countries of the world differ dramatically in standards. Somecountries believe highly in the family (Mexico), their religion (Israel),or profit (US). What we revere as a goal to strive for may not even be aconsideration for another. So foreign countries are going to have toadopt American perspectives to succeed in the new global marketplace. Most likely, a compromise between standards will be met and abided by. Nevertheless, differences in standards complicates free-trade. Globalcompetition will eventually rule the global markets, but protectionism isnot the road we need to be on to reach this goal. What must occur ismore along the lines of the four points I described previously. If thisTrade Adjustment Assistance Policy is employed, we will be driving aPorsche down the highway to global competitiveness.