As I am a
firm believer and advocate of a genuine global economy, I
believe that we must allow companies the freedom to produce
in lower wage, less developed countries. The perceived exploitation of people in less advanced countries may seem coarse, but this utilization of
inexpensive labor clearly boosts the respective economies currency. Thus, it is desirable for every party involved. As for overseas production being undesirable for the advanced country due to the loss of jobs for their people, these people are forced to educate themselves in order to be part of a knowledge based work force.
Naturally,
blue collar jobs will continue to decline as society advances further into
an age of extended and virtually infinite information. Thus,
specialization for members of society grows increasingly imminent.
I’d like to examine why the utilization of
inexpensive labor is good for the country that is hosting the development
of the the production. Also, it will be considered as to why it is
perfectly noble for the people and society of advanced countries to be
in favor of low wage production abroad. This explanation is especially
geared toward those who are under the impression that jobs in their
advanced country are being lost to people of these so called,
‘third world nations’.
In order for global companies to keep up
with overwhelming competition, they must maintain the highest possible
quality, at the lowest possible manufacturing costs. Hence, if the
less/under developed country has the ability to provide land, labor
and capital conducive to optimum quality at a lower overall cost,
the global entity has absolutely no alternative but to take
advantage of these more efficient opportunities.
Taiwan:
A Prime Example of
Increased Global Prosperity
20 years ago, Taiwan was a developing
country that welcomed foreign investment taking advantage of lower
cost manufacturing and assembling activities. Now, partly because of this,
they are a developed country with a highly increased standard of
living.
The latest generation of young adults have
grown up increasingly healthier and are taller on average than
preceding generations. This is due to increased nutrition and a more
advanced societal system that is currently providing better medical
care than ever before. The amenities offered by Taiwan’s
contemporary life are evidence. People are earning more money,
driving nicer cars, living in better homes, and receiving the
opportunity to travel and become educated by top universities at
home and abroad.
Virtually Everyone Benefits
From the Production of
Commodities Overseas
The benefits of
producing overseas have exponential monetary gain for all parties involved. The host country,
(that country which is offering the comparably lower production costs),
benefits by the immense increase in jobs for their people. Hence,
some of this factory
work/assembly production is extremely menial and mundane.
The unfortunate burden is that work of the repetitive nature is not very
stable for a persons’ mind or well being. Also, the pay received is extremely low and not livable from a western reference.
However, whether the job
is performed here or there, somebody must perform it. For example,
in the U.S., there is demand for people working in clothing factories,
and as clerks in convenience stores and gas stations. In addition,
people work in fast food restaurants and as dishwashers and general
service helpers.
Money the poor
people of underdeveloped nations are earning is actually enough to scantly
achieve sustenance. This is positive as the people performing these menial and repetitive tasks are
working and surviving opposed to suffering the inadequacies of
unemployment. They can provide enough food for their families to
sustain a meager quality of life.
This is more favorable than suffering greater consequences of
malnutrition, starvation and poor health care. It also cuts down on
crime and gives people a feeling of worth, adding to their security
and well being. Also, they are contributing to the generation
of economic transaction and monetary movement, which
boosts consumerism and produces a de-lagging effect on the economy.
Companies today are forced to analyze the option of producing
at least a capacity or aspect of their goods and services in locations
that possess more cost-effective operations.
This Global Management perspective does not only produce jobs that
are unhealthy and menial. It also produces jobs of a more mind
utilizing and management focus. Underdeveloped
nations possess educated citizens who
lack stable work. Some are
hired as middle managers, foremen, administrative specialists,
translators, accountants, systems programmers, etcetera.
The Global location perspective provides jobs for people of the
United States to act as coordinators based at home and overseas.
It provides more than modest positions for people who can utilize
specialized cultural/language skills in combination with business.
It produces more incentive for people of the United States to be
trained multi-culturally as demand for this knowledge
continues to increase. This training is important for the future of all
countries competing in an increasingly global marketplace.
A moral dilemma
raised is the fact that children of a very young
age must work in order to support their families in place of
achieving an education. For example, it has been found that companies such as Levi’s and Reebok have actually employed children as young as 10 and 11 years old.
These companies are concerned about accusations of exploitation.
The reason being is that this produces negative public relations issues
for the respective conglomerates.
Thus, respective companies have been phasing out the majority of these
young workers. However, it is a very difficult thing for these global
entities to control as customs and cultures in these countries
vary immensely. For example, in some countries it is customary for
children to work and support their families. In several cultures, people breed
offspring solely to have able bodies to work and support
them.
Yet another flaw concerning jobs of the mundane nature are the
physical limitations that may be created after months or years of
standing or sitting in the same position, hence performing the same body
movements repetitively. To avoid this burden, companies may rotate their
staff into different assembly lines and work settings so to
engage in using different parts of their bodies, thus eliminating ergonomic discomfort.
Also, companies can educate their employees on how to perform tasks
in ways that minimize the health risk. These measures will cut down
on mental and physical problems and will increase morale.
With recent technological
advances and increased automation, many
jobs lacking specialization continue to become obsolete. Citizens face the
increased need to acquire unique skills that take time to learn. We live
in an increasingly knowledge based economy. Now, there is
less need for physical production and more demand for specialized
knowledge.
With companies moving existing mundane jobs out of the country,
people of the more energetic, motivated nature will come to realize that
they must act now, thus becoming specialized faster, to prepare
for a more lucrative, self satisfying, and more rewarding
life. I believe that most people would prefer to work with their brain,
opposed to with their hands and body and mere physical existence.
"Send the manufacturing, low wage, monotonous work out of the country,
or at least some of it, and motivate our people to get specialized"
It appears as if a
true global economy is better for everyone involved. The world
is able to share it’s resources, hence, everyone benefits and achieves a
more dynamic, prosperous, and higher quality of life.
Clearly, a plethora of benefits are achieved. The people of
underdeveloped countries receive economic stimulation. Global
companies are able to cut costs, surviving in an increasingly
competitive world. Also, it helps people realize
that it is increasingly necessary to receive specialized education or
training in order to achieve at least a moderate standard of living.
Albeit everything about manufacturing and production in a
poor, underdeveloped country is far from perfect, the positive
attributes appear to outnumber the negatives ones.
Going Global