Literature Review

Children Pay High Price for Cheap Labor

This article tells about the striking level of illegal children labor utilization all around the world. There is the Convention on the Right of the Child claiming that all kids should be kept safe from exploitation. However, the obligatory work fulfillment that may in any way prevent a child’s education or harm the physical or mental health and affect moral, social, or spiritual growth, there are many cases witnessing children labor. As a rule, the most prominent and most frequent ones are the cases taking place in developing countries of the Third World. Usually, children are working under a threat of intimidation or violence. Moreover, the labor atmosphere can be rather stressful and tense (three working days with 1-2 hours breaks). Many children experience serious health problems, development hauls, and even death. The most effective means of stopping labor exploitation of kids is the enforcement of existing laws, creating new ones, media pressure, government control over the situation, and obligatory schooling. Meanwhile visiting classes prevents possible exploitation. The article provides a general but very informative piece of information, acquainting readers with the essence and scale of the problem. Moreover, the research gives some recommendations on problem prevention and elimination.

Outsourcing Is Not (Always) Evil

This article considers outsourcing as a process that deserves appraisal and possesses more advantages than shortcomings. The study introduces a new concept of impact sourcing which means the “strategy of harnessing the Internet to bring low-cost data management jobs” to distant and poverty-stricken countries. Outsourcing is considered to decrease the level of poverty in developing countries. Meanwhile, it allows its people to work with dignity and improve their productive capacity. On the other hand, the job demand in developed countries may significantly suffer while it is reduced. The majority of Americans claim to outsourcing to be an extremely harmful factor for the United States economy. Being characterized as an evil that moves jobs overseas, outsourcing is highly stereotyped and underestimated. Modern society is no longer the community that gains when somebody else loses. On the contrary, it is possible and extremely advisable to develop scenarios that provide victory for every interesting part.

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Child Labor in China, Factories & Child Trafficking

However, the problem of child labor exploitation has significantly decreased within the years. It is rather outdated. There are still single cases of child labor and child trafficking. Approximately 19 years ago, China eliminated the occurring problem with the help of universal primary education. Nevertheless, nowadays, one can notice more cases of human labor exploitation (of different ages) and rare, but strikingly cruel accidents of child trafficking and prostitution. The article analyzes the main preconditions of problems occurrence, the evolution of the problem’s intensity, and the current situation of child labor in the country. Moreover, the research pays considerable attention to the political, cultural, and socio-economic influence on problem prevention. Unlike India, the Chinese government was obsessed with the idea to change society; and universal primary education was the first step to its transformation. The article also mentions the damaging effects of globalization on the problem (globalization has created an extra need for children labor). All in all, the article deeply analyzes the main prerequisites of the problem that occurred and the factors that either enhance or eliminate the relevance of the issue presenting insight into the evolution of children labor in China.

American Companies Head East For Growth

This article tells about the rapid development of India and China that has made these countries the main target of multinational corporations. In the time when the financial crisis decreases the economic possibilities of the country and imbalances the economy, in general, these two states are showing more promising results than any other Western country. As a result, one can be sure that in the nearly future all-powerful and large organizations will ask extremely fast-developing Asian countries for help. The main reason for the interest is the promising prospects of increasing profits. McDonald’s, for instance, has planned to enlarge the number of its outlets in China. CA, the software company, declared that it was going to invest a considerable amount of money to develop the facility in India. A famous French hotelier Accor planned to increase the number of hotels in Macao, Hong, and Chine thrice. Undoubtedly, Asia has a lot to offer to multinational organizations. However, it will not stand the invasion on behalf of several countries at once. Nevertheless, the states have big supplies they will not survive the worldwide economic attack.

Multinational Corporations in the Third World: Predators or Allies in Economic Development?

This article tells about the contradictory attitudes and perceptions of multinational corporations in Third World countries. Many people consider that MNCs aims at installing the common Western cultural values rather than simply helping the states to encourage their economic development. As a result, multinational corporations are usually described and perceived from an extremely distorted perspective. Even though many Third World countries forbid and object to MNCs’ interference in their economy, bribes paid to government officials solve all problems. Therefore, these encourage corruption. If one does not take into account the shortcomings of the MNCs’ politics, it can be undoubtedly regarded as a positively imaged ally that enhances the undeveloped states’ well-being and reduces poverty. According to the study, such countries as Bermuda, Bahamas, Singapore, and Taiwan serve as the obvious evidence of the positive influence of multinational corporations on the countries of the Third World.

Children Found Sewing Clothing for Wal-Mart, Hanes & Other US & European Companies – National Labor Committee

This article tells about the case of 200 children sewing goods for such large corporations as Puma, Wal-Mart, Hanes, and J.C. Penney in Bangladesh. The case was reported and documented in 2006 by the National Labor Committee. According to the report, all children were working under inhuman conditions (working for 95-100 hours a week, sleeping in a factory, and getting extremely low salaries) and under the complete threat of violence. The research mentions that the pressure of mass media is a good means of struggle against the cruel system of cheap labor. When in 1996, Wal-Mart was revealed to exploit the labor of 12-year-old children in Honduras, the public scandal started on the problem’s basis preventing further illegal cruel utilization of kids’ labor. Nowadays, the task of large organizations is to ensure there is no such problem disclosure and guarantee that all children are at school but not in dirty factories. The article is aimed at readers to pay attention to the significance and the whole consternation of the situation happening in the world. On the example of one case, the study generalizes the relevance of the problem and gives some recommendations on its termination.

Overseas Sweatshops Are a U.S. Responsibility

This article argues about the responsibility that should or should not be taken by the United States concerning overseas sweatshops. The research incorporates both the arguments for and the tips against the country’s charges. The problem of overseas sweatshops is put strictly on the stake of the global economy market. A considerable part of goods that people buy from developing countries is produced by employees whose rights are significantly neglected. Moreover, respect towards human rights advocates economic and social evolution. On the other hand, many human rights violations remain under the authorities’ control. Overseas factory workers are forced to toil at sweatshop jobs under the threat of physical abuse or deportation danger. Nevertheless, the United States is not and cannot be responsible for all the violations taking part overseas. Meanwhile, it is not always caused by its influence but is a result of gaps in the target country’s policy.

Chinese Factories, Lost Fingers, and Low Pay

The article deals with the concepts of labor exploitation that expose employees to a dangerous working environment and cause severe health problems. Such companies as Wal-Mart, Disney, and Dell are disposed to a thorough analysis. Practicing unfair and illegal labor exploitation, the corporations somehow have omitted responsibilities for their crimes. Among the reasons for the problem, the article mentions the pressure put on the countries by Western companies. These corporations insist on the suppliers’ price decrease while still demanding the owners of factories to improve the operations, product quality, and attitude towards employees.

Globalization Is Only a Good Thing if It Benefits All Groups of Society

The rapid development of globalization processes over the last decades has significantly increased and enriched the world economy. Meanwhile, at the same time, there have been severe difficulties and problems in the developing and developed countries. Due to globalization, the developing states have faced a considerable flow of foreign investments offering new opportunities and improving their way of life. Second, globalization has influenced the emergence of the middle class in developing countries and the increase of the middle-class level in developed states. Moreover, the citizens of developed countries have benefited through consuming cheaper goods and services manufactured in developing ones. On the other hand, the consumers and companies of the developed states have had more benefits than the clients and organizations of developing ones. Moreover, globalization has increased the level of environmental pollution, therefore, causing severe health problems. Globalization has also aggravated the issue of labor exploitation and unemployment. In general, having advantages and disadvantages, the process of globalization could bring more benefits if only the interests of all parties are taken into account.

Companies Outsource Because That Is Where the Sales Are

This article tells about the importance of such processes as outsourcing and off-shoring for economic enhancement. Outsourcing is a process of the company’s signing the contract with the outside organization or individual directed at the supplement of particular services or goods (software programs, bookkeeping, etc.). The main goal of outsourcing is a comparative change, which is the process of choosing the organization or person being able to produce the products or provide services at a lower marginal cost. It is not surprising that the method of comparative change is a key precondition of a productive and successful economy. What concerns off-shoring, is the process of the enterprise’s outsourcing jobs to another country. Nevertheless, if the corporation builds its affiliate abroad and hires people from the country where it has been constructed is also off-shoring. However, it is not automatically outsourcing. In other words, large companies see a promising perspective in using cheaper labor offered by developing countries, therefore, enhancing their profits and competitiveness. However, the government tries to prevent the flow of investment into other states and encourages patriotism promoting domestic production. Many large organizations will prefer cheaper labor from abroad rather than more expensive one from the inside. Accordingly, the level of job supply in the country is decreasing while the company’s economy is considerably increasing.