Cheap labor
U.S.《 Forbes》 on January 17 published an article ,and its original question : the end of cheap labor in China , jobs are gone ? Globalization makes Apple , GM and other large companies have chosen to set up factories in countries with lower labor costs the most . In the past , China has always been their first choice . But now , the Central Kingdom is losing dominance , because labor costs can not be as cheap as before . Since 2010 , China's manufacturing costs rose an average of about 16% annually , more than any country in the world . Rapidly aging population , higher worker productivity is the main reason for rising .
We should find out the rode leader is cheap labor.And this article we will talk a lot about cheap labor.
Cheap
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After China's reform and opening up , China has become cheap labor advantage of Chinese economic
development , for decades , it is this cheap labor , and promote China's rapid development over the past 30 years . But I think when this advantage into full play , but not in time realizes the benefits of the transition time , and today , cheap labor has become China's biggest disadvantage , it begins to hinder the further development of China .
China's labor force is taken for granted purely natural and human resources is suppressed to the bottom line of simple reproduction , which is absurd ignorance plant depreciation costs , including workers ' physical exertion , reduced wages , increasing to labor strength , work longer hours , to avoid social insurance , reducing the investment of / in the environment , perfunctory responsibility for training , even small cuts in tight economic order . This will force a lot of cheap labor to be liberated , and find another way of life , so there will be some staff shortages in some business and labor mobility . Furthermore , cheap labor and unfair labor remuneration is because the old system of management and price limits , there is lack of environment of fair competition rules and different occupations , departments , enterprises and regions . Laborers Share the game is not fair opportunity and treatment . As a result , it is likely to cause unprecedented and unfair to
Under Capitalism, America's free market system offered opportunities of advancing personal interests for laborers while at the same time meeting the labor requirements of our economy. However, once the Chinese immigrants were in the country, capitalism yielded different results for them. The earliest Asian immigrants into any US territory were Chinese laborers in the Islands of Hawaii as early as 1836. These immigrants left a long-lasting impression on industrialists and wealthy European-American through their dedication and hard work (Takaki 21-23). Eventually this led to massive importation of Chinese labor to build everything from cities, bridges and even railroads throughout the rest of 19th century. Since owner can control or decides the labor wage, they had lowered the wage of those jobs to gain the maximum profit. In the west coast numerous Chinese laborers were massively imported as late as early 1900s to build cities. Eas...
China’s economy is one very large indicator of its role in globalization. “In 2010 China became the world’s largest exporter” (CIA World Factbook). Without China many places such as the United States of America would be without billions of goods imported from China annually. An influx of companies moving their manufacturing to China has allowed people to flock to cities and find jobs. China’s economy has grown exponentially over the last few decades. In the last three years China’s economy has grown by nearly ten percent every year. Despite this influx of money to China it has also resulted in many drawbacks. For example, China’s environment has been obliterated. China burns more coal than every country in the world combined. Beijing has been so badly polluted that there are actually companies that sell cans of fresh air to people, and gas masks are a common sight. On January 12th 2013 Beijing’s air pollution reached a record setting 775 PPM. To put that into perspective, the scale for measuring pollution is 0-500 PPM. This set an all-time recorded high. In Los Angeles a high ...
China, over the years, has come to good terms with producing and exporting lesser-skilled-intensive goods for foreign nations. China’s premium in skill rose at the beginning of the 20th century, flattening out the prices of exports around 1929 (Yan, 2014). It is shown in data that if there is no change in the overall final product of workers, and imports vs. export prices become neutral, that China’s labor skill level will fall in correlation. Data also shows that the exported items (coal, cotton yarn, raw silk, bristle, agricultural goods, etc.) in which use more of an intensive form of unskilled labor, will experience a dramatic increase in their growth of prices. Depending on the supply curves for labor, wages of skilled vs. unskilled workers will be determined on the overall demand for each type of worker. (Yan, 2014).
For the past twenty-five years, China has witnessed an overall increase in its domestic growth (Fischler 148). According to the article, “The Rise of China as a Global Power,” by Dr. Rosita Dellios, China “is the world's fourth largest trading nation, rising from 32nd in 1978 to 10th in 1997.” Similarly, China’s GDP is also second to the United States of America, generating 13 percent of the world’s output (Dellios). Since China’s introduction into the World Trade Organization in December 2001, its average tariff dropped from 41 percent in 1992 to 6 percent in 2001, becoming one of the most open economies in the world (Dellios). China is also the world’s fastest developing economy, obtaining an annual growth of 9.5 percent through foreign direct investment, low labor rates, emerging markets, and growth expansion. (Dellios). Therefore, the 21st century has been titled the “Chinese Century”, as China has become the second-largest international economy in the world (Ji-lin 15).
However, the impact it has made on China can be considered to be great as it brought China under the limelight in the global economy. Globalization has had many positive and negative ramifications on the Chinese economy. In the short run, it may be so that the negative impacts outweigh the positive impacts, but that is easily debatable. This is because all the negative impacts of globalization can be corrected with economic policies that can be efficiently undertaken by the Chinese government. In this manner, China in overall will be able to enjoy all the benefits of globalization and contribute more to the rest of the world as it continues to grow economically and socially. In today’s world, globalization is an important part of the development and prosperity of each nation and China too should be able to reap from its benefits. Today, as China proudly holds a place in the global economy as the world’s second largest economy and most populated country in the world, it can be said
Large corporations seeking the extra dollar to pocket are willing to spend whatever it takes to reduce the cost of production and increase profit margins. Doing whatever it takes in some instances can help men moving operations overseas to developing countries who are glad to be working. These developing countries unemployment rates are extremely high, so any job that pays is great to have. Americans lose jobs to foreign workers because the American economy is one of the largest in the world and its citizens enjoy great standards of living, when juxtaposed with a city of the same size in Taiwan. Labor costs play a huge and crucial role in corporations, which in turn pay the profits to the corporate giants who run, manage, and own the businesses.
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
are a major cause for jobs becoming outsourced. The outsourcing of jobs can greatly impact a nation, just like it did in America. The size of the U.S.work force has been reduced due to Chinese factory workers because they were the cheapest labor force and could work longer hours for a smaller pay. No wonder as I grew up I observed the items I was using, very few said, “Made in America”, because most said “Made in China”. It is now seems clear that there is an economic incentive for companies and corporations to produce toys for children, clothing, sneakers, technology in China and other foreign Asian
The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural labor force of 120 million people, many of whom migrate to industrial centers to look for factory work, and drive down wages. As long as wages are low, the United States will continue to gobble up products made in China, while Chinese consumers will prefer to buy cheaper, homespun alternatives to American products. The rise in trade deficit with China has come at a cost to jobs in the United States, accordin...
“Marketization of the Chinese labor market and the role of unions.” Global Labour University Working Papers, vol. 4. [03 April 2014] 36. Zhu, Y. & Warner, M. (2000). “An Emerging model of employment relations in China: a divergent path from the Japanese?”
Though China is the world's fifth-largest country in terms of area and the second largest country in Asia, it is the most populous country in the world. There is over one billion Chinese people which is 19 percent of the world's population and the population still keeps growing. From 2000 to 2010, Chinese population growth is about 6.2% and if we compared the population from 1960 with 2010, the population had grown more than 100%. While half of Chinese people live in the rural areas, the urban population is growing rapidly. In January 2012, urban population has exceeded the rural population for the first time. Now about 100 million rural people become migrant workers which move in and out the cities in search of work. This has caused many problems in China , since in the past and the present day, such as traffic jams in the city, pollution, and most importantly the shortage of food and shelter. This might affect the Chinese economic as well.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
In the race to be the best, China is clearly outperforming the United States. China has strong economic fundamentals¬ such as “a high savings rate, huge labor pool, and powerful work ethic” (Rachman, Gideon. "Think Again: American Decline). Their economy has grown an astonishing 9-10% over the past thirty years; almost double of what it used to be decades ago. China is also the “world’s greatest manufacturer and its greatest market” (Rachman). The continuing growth of China's economy is a source of concern for not only the U.S. but surrounding nations as well. One could argue that the U.S. need not worry about China’s growth because of the spread of globalization and that western ideologies would influence China to turn to democracy. Yet China has still managed to “incorporate censorship and one party rule with continuing economic success” (Rachman) and remains a communist country. Hypothetically, even if China does resort to a democratic state, this does not gua...
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.