Tuesday, October 11, 2011
Role of Global Companies
In the modern day market there's a large amount of competition. Lots of big corporations will do whatever it takes to get ahead of the competition. Sometimes, this involves using things like child labor and outsourcing to foreign countries. This way, the corporation isn't bound by the same regulations to protect human rights. The question is, is this ok and should we do something to stop it? The exchange rate for foreign currency allows for these companies to pay these workers less yet have it be a realistic amount for these workers in their country. However, sometimes these needs are not met and the workers are paid near dirt amounts. I think outsourcing is alright as long as it's regulated the same way businesses are regulated in America. It can be a smart business practice, but not when it comes at the expense of America's reputation or at the expense of human rights.
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I like how you explained the cost-minimizing strategy. However, I'm going to have to disagree with your statement that the workers are able to be paid less because of the exchange rate of foreign currency. I don't think it's as simple as "8 chinese yuan sounds better than 1 dollar, so they won't know any better." I think they can get away with it because if you are offered a job that pays 1 dollar versus no job at all, you'll take the job that only pays 1 dollar.
ReplyDeleteI agree with the both of you. I agree that if there is a job that pays vs. no job, you're going to take it. But then what do you do if that only job infringes upon our human rights? Do you still take that job? It might be easy for you and me to say no, but it might be a lot harder of a decision for someone else.
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