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


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