Sunday 20 January 2013

Expolitation in international business



Exploitation of workers in international business

Exploited by multinationals and developed countries, especially their labour force which is normally considerably cheaper in comparison to the workforce in developed countries. This is because in the MDC's there are many more rights and regulations for workers including a minimum wage which can be a lot higher than the wages of Third World workers. The developed world also does exploit the third worlds' economy by paying low prices for the goods and services that they sell which are normally primary goods such as raw materials.

The largest group exploited workers is migrant workers, which is made up of men, children, but mostly women. But it is not only the migrant workers that are facing this plight. Anita Chan, author of China’s Workers Under Assault, discusses these other workers facing poor conditions. Chan explains that “For many formerly privileged workers in the state-owned industrial sector, working conditions, benefits and job security have declined precipitously over the past fifteen years.” These low wages are commonly below the minimum wage which the Chinese government set in the Labor Law.


The exploited labour is normally where workers are made to work for long hours and at very low rates in poor working conditions such as factories and sweatshops. These workers normally are very poor and have low or no education, with a lacking health care service. 

Some examples of these two kinds of exploitation are :

The african mining companies which are mostly owned by western countries are known for their exploitation of third world workers who work in poor conditions for very little pay. This link shows the history of african mining:
Unfair wages for African Workers
Tesco have reported profits of over £3 billion last year and workers in africa are being paid under £98 per month, some people are saying that Tesco should share out the profits more and give the workers in africa a better wage. This article from the guardian explains this in more detail:
These forms of exploitation are easier on the poor and weak and big internationals use this to cut down their costs and increase profit.

However if this exploitation was to be leaked through the press to the public about a specific company then this may deter their customers from using them for goods or services as it would be seen to be unethical. So this reduced business would have drastic effects on their profits and so by using Third world labour they are taking a risk that if it got out then they would be in a bad position with public image. Also if there were suppliers for this business then they may not supply them anymore so that their negative image does not go onto them and ruin their customer base.
They were accused of exploiting young workers where some of them were physically and verbally abused and were also forced to work 100 hours overtime every month. The workers were not allowed to sit during shifts and were working in poor conditions. They however did deny using child labour but this was a very recent accusation of them which took place in September 2012.


http://en.wikipedia.org/wiki/Exploitation
http://www.theaustralian.com.au/business/scramble-to-exploit-poor-nations-in-africa/story-e6frg8zx-1225962341037


Politcal


The concept of political risk in international business is based on the existence of possible threats to the firm from political instability and lawlessness in the area of investment. Once a firm leaves the basically standardized world of domestic business law, the global environment is much more fluid; most states can use many levers of power to extract more resources from the investing firm. 

The reason behind the embargo is that the European Union fears that the dictatorship in Burma is becoming to violent and brutal. 

They fear that if the Burmese carry on recieving weapons, then they could decide to invade a country, jeopardising EU treaty agreements and negotiations. The reason behind the embargo is that the European Union fears that the dictatorship in Burma is becoming to violent and brutal. They fear that if the Burmese carry on recieving weapons, then they could decide to invade a country, jeopardising EU treaty agreements and negotiations. The Iranian currency has fallen during the past year and has lost a third of its value which has sparked street protests. US official and also other Western officials blame the drop on combination of economic mismanagement as well as sanctions. 


The UK has adopted into their legislation the European Unions decision to adopt an arms embargo on Burma. This means that it is illegal to export arms and related material - ie military weapons and goods, to Burma. The UK has interpreted this as covering all goods on the UK Military List.




Pollution


Pollution is the introduction of contaminants into the natural environment that cause adverse change.  Pollution can take the form of chemical substances or energy, such as noise, heat or light. 



Pollution is a major problem which is caused by many businesses due to manufacturing. It has caused so much pollution that estimates show it has caused up to 1.4 trillion pounds sterling worth of damage. Here are some of the effects of pollution due to international business.

The world's top firms have caused up to £1.4 trillion of environmental damage. The cost of pollution and other damages to the natural environment caused by the world's biggest companies would wipe out more than one third of their profits if they were held financially accountable. 

Rich countries are now driving pollution in poor countries through mining and raw materials. Some of the other causes are gold mining, groundwater contamination, radioactive waste and acid battery recycling.  
http://en.wikipedia.org/wiki/Pollution.