FRHD 3090 Chapter Notes - Chapter resereve: Walmart, Living Wage, Human Capital
19 Apr 2016
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The ses of global poverty (course reader)
• Global village
o Mansion on the hill to the flooded shack
o They are aware that wealth and opportunities for education and health care are not
evenly distributed and that there is a substantial gap
o Gans identified 13 uses of poverty, this article highlighst only 11 of them
▪ The existence of global poverty helps ensure the wealth of affordable goods for
western consumers
• We have decently priced goods, that low income people made for very
little pay
• Your tage says mad ein china and they got paid very little while you
spent a fair decent price for it
• This benefits the consumer fo that apparel
• On average their living wage is about 87 cets, but they are paid only 23
cents an hour
• Same thing goes for food and low paid immigrant farmers
▪ The existence of global poverty benefuts western companies and shareholders
in the form of increased profit margins
• Labor costs are a he part of companies expenditures
• By reducing labour costs, they can save and make more money
• Companies are more likely to relovate to third world countries where
they do’t have to pay as uh i laor osts
o Dads company
• Those wantong to work for very little are living in places where there Is
a lack of safety and environmental regulations
▪ The existence of global poverty fosters access to resources in poor states that
are eeded in or desired by the west
• Poor state ssell raw goods for low prices ot the west
• Poro countreis cant reap eth efulll benefits of the =ei reosurces, unlike
the west can
• Linked to corrupt governments
▪ The existence of global poverty helps support western medical advances
• The poor are good guniea pigs for testing medcines developed by the
west
• Ex. Pharma companies
• These countreis lack regulatory oversight
• Although these tests allow for the development of drugs an danother
revenue stream
• Theres oressure to develop anew drug to fight the disease
▪ The existence of global poverty contributes to the advancement of western
economies and societies with the human capital of poor states
• Tha ample reward for human capital, pulls the best monds form their
coutnires of orgins
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