eco geo lec 16 4/11/2013 7:04:00 AM
2 basic components:
Freedom of trade -new thing
Freedom of investment – out sourcing of jobs indirect and direct investment
What is required?
Countries should open their markets – dismantle trade/investment barriers
Why does these barriers exist?
Why remove them?
“race to the bottom” – in order for cooperation to be profitable they need
cheaper labor and they have to keep searching for cheaper labor and if you
cannot keep the cost of labor down investment will go elsewhere.
“cut and run” - this is about exploitation of labor
“living wages”- 30 to 40 thousand dollars a year in Canada but in third
world countries will be lower
>80% of workforce
Men – managers, supervisors, security
Women - assembly line work
Little formal education Gender division of male and female
Cheap, Flexible, Replaceable
Greater dexterity, tolerant of tedious work, docile
10 hours per day, 7 day week
No protection ( no unionization) & No benefits ( health and vacation)
Why tolerate these conditions?
Hourly garment wage:
Guatemala 37 cents
Nicaragua, 23 cents
Bangladesh, 13 to 20 cents $22.50 Factory