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Essay 2 final - Grade: B

Paper 2 Final- Prof Oddenwald
Course

Writing 100 (wr100)

31 Documents
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Academic year: 2017/2018
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Hiren Wadhwani WR100 The Great Non-Debate Over International Sweatshops Economics is a “game” that brings on board the interplay between wages, labor and working conditions. Every employer seeks to ensure there is a sustainable equilibrium between these elements. Ethicists, on the other hand, act in the capacity of watchdogs by providing relevant criticism to ensure the laws of the contract is not breached. In the recent past, international companies such as Nike and Reebok have been in the limelight following accusations of exploitation of the labor force of teenagers and payment of low wages in foreign countries, especially in the third world. As a result, they have earned the tag of sweatshops. However, the debate over the rightful position of sweatshops in the international market and their impact on the developing countries has elicited contrary opinions considered to influence sustenance of the market forces. Ian Maitland delves into the scrutiny of some of the policies put forward by the ethicists and the likely aftermath. He states that international companies have boosted the economic welfare of their host countries despite the negative criticism leveled against them. One of the major accusations leveled against the international sweatshops is that they pay low wages (Beauchamp et al. 210). Indonesia and other developing countries that host these companies are reported to have workers earning low wages compared to their counterparts in the home countries. The ethicists, therefore, advocate for fairness in the payment of wages. Tests such as Robert Reich’s and Thomas Donaldson’s that derive their authenticity from the relationship between the growth of the national income and the worker’s wages have been suggested as ideal in trying to evaluate the standard wages that ought to be paid to employees (Beauchamp et al. 211; 209). Activists claim that the international companies are the reason behind the deplorable living standards of their employees in the developing countries. This idea Hiren Wadhwani WR100 stems from the fact that the companies bid and partner with countries that demand little regarding employees’ salaries, working conditions, and capital for the establishment. It is paramount to ensure that the workers can attain their minimum physical needs and those of their families. However, there are a number of factors come into play that needs to be considered before the application of what could be termed the golden rules which expound on the essence of mutual goodwill. Different countries have varied costs of living, and the disparity is even greater when the comparison is made between the developed and developing countries. The developed countries which are the home countries of most of the international companies have high costs of living thus high minimum requirements to meet the daily physical needs. Setting a standard wage for the employees without consideration of the local market forces will only act to the disadvantage of the host country (Arnold, Dennis, and Laura 209). Despite the fact that the employees will be earning more, other employers within the host country will be compelled to increase their wage margins to compete favorably in the market. Also, the government will also need to revise their policies to accommodate most of their employers. The result is a distortion of the market dynamics that will require a lot of time to re-establish. Standardization of wages is therefore not a solution, but careful evaluation of the market forces at play in the host countries will provide an adequate bearing in the determination of the ideal wages for the employees without upsetting the prevailing market dynamics. Therefore, Ian Maitland’s position on employee wages is reasonable for the good of the economy of the host countries. Foreign investment constitutes part of the primary sources of income for most developing countries. The international companies are part of the institutions that contribute to a significant magnitude the foreign exchange. Considerably, these companies seek a comparative advantage Hiren Wadhwani WR100 It is imperative that the interests of employees are protected by better-governed institutions that have the muscle to push for their welfare and legislate on their behalf (Arnold, Dennis, and Laura 215). The inception of labor unions came as a milestone to the workers who had for long felt oppressed, and it gave a channel of communication to the ethicists even adding to the strength of their criticism. Through these labor unions, the multinational companies have had little chance to operate as sweatshops. The employees have become better informed about their rights and the employers have been kept on the check to ensure the implementation of the minimum rules of operation. On the contrary, these labor unions have not covered all the workers especially those in the rural and informal employment setups. The urban areas that harbor these unions contain workers that are already well paid and exhibit better conditions thus having limited need for advocacy of their rights or channels to air their grievances. Employees in the rural and informal sectors are left to plead at the mercies of their employees to the ignorance of these organizations (Beauchamp et al. 216). Despite the fact that they could have subscribed, they do not get the anticipated benefits from these labor unions. The statistics are given, and the pool of grievances recorded do not accurately reflect the concerns of the employees thus it becomes a little difficult to mount relevant complaints against the international companies which have become sweatshops. Some of the governments have set up special production zones (SPZ) to evade excessive regulation by the labor unions that have jeopardized foreign investment especially the criticism on trade-offs. Therefore, Maitland argues that the labor unions and the criticism alone are not sufficient to streamline the ills at the workplace. More inclusive approaches incorporating the governments and all employees is necessary to improve the state of the work environment Hiren Wadhwani WR100 Multinational companies have also been implicated in propagating oppressive regimes in the third world countries even worsening the situation for the employees and fueling the decline of the economy. The governments in third world countries such as China and parts of East Asia have displayed punitive measures in dealing with independent labor organizations, employees’ strikes, and other forms of criticism to retain power. Their efforts to carry out their harsh regulation mechanisms have been fostered by the funding they receive from the multinational companies (Beauchamp et al. 211). Closely examining the situation in most countries, it would be striking that the unemployment rates are as high as 40% and the rates underemployment are also high. These figures have nothing to do with the foreign companies but are problems harbored by the host countries. The international companies offer a solution by providing an alternative means of employment and funding to the government. Once again, there exists a widening gap between the rich and the poor in the politically unstable countries; a fact that alludes to the increased intrusion of the international companies (Arnold, Dennis, and Laura 217). It could be true that they are partisan in the affairs of the repressive regime, but the widening of the gap between the rich and the poor is the result of several factors among them corruption and poor governance. Evidently, as much as the multinational companies are deemed to be the cause of the problems existing in the third world countries, they are more of a relief than a challenge. Criticism of these companies is only relevant to the point of making them more productive beyond which it just gets negative. Third world countries need foreign investment to cater for their internal challenges and reduce rates of unemployment. Having the companies leave will only add to their predicament. For this reason, I find Ian Maitland’s arguments for the international sweatshops sound and ethical in the event that they adopt the minimum changes.

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Essay 2 final - Grade: B

Course: Writing 100 (wr100)

31 Documents
Students shared 31 documents in this course

University: Boston University

Was this document helpful?
Hiren Wadhwani
WR100
The Great Non-Debate Over International Sweatshops
Economics is a “game” that brings on board the interplay between wages, labor and
working conditions. Every employer seeks to ensure there is a sustainable equilibrium between
these elements. Ethicists, on the other hand, act in the capacity of watchdogs by providing
relevant criticism to ensure the laws of the contract is not breached. In the recent past,
international companies such as Nike and Reebok have been in the limelight following
accusations of exploitation of the labor force of teenagers and payment of low wages in foreign
countries, especially in the third world. As a result, they have earned the tag of sweatshops.
However, the debate over the rightful position of sweatshops in the international market and their
impact on the developing countries has elicited contrary opinions considered to influence
sustenance of the market forces. Ian Maitland delves into the scrutiny of some of the policies put
forward by the ethicists and the likely aftermath. He states that international companies have
boosted the economic welfare of their host countries despite the negative criticism leveled
against them.
One of the major accusations leveled against the international sweatshops is that they pay
low wages (Beauchamp et al. 210). Indonesia and other developing countries that host these
companies are reported to have workers earning low wages compared to their counterparts in the
home countries. The ethicists, therefore, advocate for fairness in the payment of wages. Tests
such as Robert Reich’s and Thomas Donaldson’s that derive their authenticity from the
relationship between the growth of the national income and the worker’s wages have been
suggested as ideal in trying to evaluate the standard wages that ought to be paid to employees
(Beauchamp et al. 211; 209). Activists claim that the international companies are the reason
behind the deplorable living standards of their employees in the developing countries. This idea

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