What do people in other countries need to do to be treated fairly by outsourcing companies? Have you ever thought about the effects large companies such as Marine Atlantic have on labourers on the ship breaking profession? These “transnational” monopoly companies are the only ones benefiting from this, what sustainable prosperity is there when you can’t even afford the food on your table?
Ship breaking is the income for 4,000 people in Alang, India. Marine Atlantic is the main supplier of the vessels the workers are breaking down on this shore. The rusted metal by itself would be enough of a hazard to Canadian workers but Indian workers are force to work with razor sharp steel, toxic waste, and chemical spills just to put scraps of food on the table for their families. These hard worker people only get $2.38 daily; if they get injured they cannot pay to get treatment leading to their families’ starvation. Kamlesh Kumar, an average worker in a ship breaking yard. He wears torn rubber boots, a loose yellow helmet and cheap sunglasses “Risks and danger are better than hunger and poverty”, says Kumar. Kumar relies on his daily wage to feed his wife and six children who live 1,000 miles away. Kumar started working at the yard eight years ago, forced by the lack of farming in is home village. He sends most of his wages back to his family, “I’ve got no other choice but to suffer through this” says Kumar.
Companies usually outsource when a job is too dangerous for the country’s labour laws without being extremely expensive. A cheaper and more efficient option is out sourcing to another country that doesn’t or have less labour laws. Apple outsources their products and their people; their products to China, and their workers from countries ...
... middle of paper ...
...le in your country could do for profit is not always right; taking jobs from people who need them in your own country. Privatization mainly benefits the rich, and the poor get their needs left behind. Sustainable prosperity is not possible for all unless equal opportunity is found; equal pay, equal rights, equal safety, and equal opportunity.
Works Cited
"Apple's IPhone: Designed in California But Manufactured Fast All Around the World (Infographic)." Entrepreneur. N.p., n.d. Web. 14 Jan. 2014.
"- Bloomberg." Bloomberg.com. Bloomberg, n.d. Web. 12 Jan. 2014.
CNN. Cable News Network, n.d. Web. 12 Jan. 2014.
Gardner, Robert, and Wayne Lavold. Exploring Globalization. Toronto: McGraw-Hill Ryerson, 2007. Print.
"Marine Atlantic and the Ship Breaking Yards of India | The Current with Anna Maria Tremonti | CBC Radio." CBCnews. CBC/Radio Canada, n.d. Web. 14 Jan. 2014.
Porter does not give any examples or statistics to support his claim. Porter concludes this article by presenting the thoughts of Professor Hart, a man who won the Nobel Prize in economic sciences. Hart is not completely against privatization, but he believes there are some industries that should be ran by the
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
The lack of knowledge Americans have on the subject of consumers affecting outsourcing is leading our country to economic stress but if we begin to recognize the issue, the jobs we could potentially save may be our own. We have examined how consumers unintentionally assist the growth of outsourcing and the different ways we as individuals can attribute to a solutions. Also we have explored an attempt the government has taken and how people are trying to further this attempt and gain further understanding so we can work towards a successful solution. Hopefully we can further inform American consumers of this issue and help them to understand how much control they have over outsourcing.
Did the major companies in America not think of global competition as they started to expand their operations and increase the salaries of the workers? Why is it such a hot topic now, why didn't this act of outsourcing start long ago? What effect does outsourcing have on the American economy, will we be able to stop this trend, and if so what will be the effect. In this paper I will be looking at and discussing why companies are outsourcing the jobs overseas. What benefits that companies are getting out of it, and the problems that face management, as outsourcing seems to be the trend of big business.
...orking environments for their factory employees. Even with international groups and organizations keeping a constant watch on companies who outsource work to impoverished countries, there is often little that can be done to control these companies. Lack of local enforcement and overlooked international law makes it easy for money-hungry companies to get away with morally wrong behavior. By bringing attention to these types of situations and not supporting companies who do not treat their workers fairly, executives will be hit where it hurts them the most, their pockets. When their profits decrease, they will be forced to look for alternatives to manufacture their products.
There are many reasons for a company to want to outsource the services or products that they need or want. Six of the biggest reasons for companies to outsource are motivation, specialization, survival of the economically fittest, economies of scale, heavier market coverage, and independence from any single manufacturer.
Grouchier, C & Walton, L. 2013. The maritime world: The Atlantic, Pacific and Indian Ocean World. Vol 2. London & New York.
Apple products manufacturing is carrying out in china only where all needed bits of products collected from suppliers are assembling there to start production. One of the reasons that makes the majority of businesses around the world to carry out their manufacturing processes especially in china is that Chines people accept low wages which results from having a very high population. As a result, Apple and the majority of businesses nowadays tend to build their facilities and carry out their production in poor or countries with high population. That would give them the potential to reduce costs and then increase profits. Apples owns factories in China where all their production carrying out till they submit finished
The outsourcing activities of Dell and HP are considered to be one of the many reasons for their downfall in the recent past as they have not been able to perform well in their response to service requirements. Some competitors such as Apple have therefore outsourced only the manufacturing but have kept the design, branding and after sales service in house.
Iphone are designed by Apple, one of the biggest companies in united states. The engineers in America design the phone but the production of the phone takes place in China. Various parts of iphone are designed by various companies like toshiba, samsung, Cirrius Logic and so on and sent to china. The parts are then Assembled by Foxconn, a company based in Taipei, China. After the assembly of the parts, the iphone is transported to us and other parts of the world. Apple Inc decision to design in California, America and to produce in China has shifted the job opportunity to China. The jobs that were supposed to be america are gone to China. The people in Chain make a li...
In regards to economic considerations, the presence or absence of market failure would be a critical issue to evaluating the need for privatization. If the situation exists in which the utilization of a free market economy will product too much or too little of the particular good or service, the privatization of this type of organization may prove to be detrimental to the mission of the organization and to the benefit of the community. If market failure is not an issue of consideration, privatization brings with it the concern of competition and how this will impact supply and demand. An artificial price ceiling or floor that had previously existed with the public institution will now be removed, allowing the market to have a natural equilibrium point that had not previously existed.
After that, Apple Inc. has outsourced its assembly to manufacturing companies at China for economic reasons. Apple Inc. partnered with these manufacturing companies that understand Apple’s products require different techniques and approaches, which often must be accommodated by very little lead time. According to Samantha Nielson (2014), all planning is carried out in secrecy to avoid information leaks. In a nutshell, Apple purchases components and materials from various suppliers and then gets them shipped to the assembling plant in
First of all globalization has led to exploitation of labor. We can’t ignore the fact that ethical aspects of international business deserve special attention. Corruption and engaging in illegal practice to make greater profit is a source of continuing controversy. Sometimes companies go international and move their production to foreign countries so they could employ workers for long hours, at low wages and in poor working conditions (sweat shops). They are also using child labor, the employment of children to a full time work that can be otherwise done by adults all that so they could get out of their responsibility towards their workers by avoiding paying them national insurance …When these multinational firms go abroad they forget all about principles and about human beings and their rights, according to Kent, J., Kinetz, E. & Whehrfritz, G. (2008/March24). Newsweek. Bottom of the barrel. “The dark side of globalization: a vast work force trapped in conditions that verge on slavery”, David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62) also agrees with them when he explained his concerns about Chinese and Indians t...
Big organizations often do this because they want to save money and produce cheaper products for the customer, so that they feel like they got an impressive deal. When Americans hear the word “offshore outsourcing”, they automatically assume that Americans are losing their jobs to foreign countries. Most of these jobs that companies outsource, such as the garment industry jobs, are offshore outsourced because they are labor intensive jobs. According to Timmerman “they do, and Nari tells me what each girl does during the process.
As opposed to the milling factory workers, who are slowly starving because they cannot afford to purchase food on their wages. Alang and Bhavnagar are prominent reminders, and symbols of the economic divide between the first and third world countries. Langewiesche did an impeccable job at gathering information from both sides, and for the most part kept an unbiased view.. One cannot deny that seeing other human beings in dire situations does not yield sympathy.