Globalization and Low-Globalization and Low-Wage LaborWage Labor

Phenomenon:

• A growing number of manufactures are exported from developing countries.

Why?

Main reason:

• Low-Wage Labor

• Globalization

Low-Wage Labor

• As we all know that the labor cost is much lower in developing countries than in developed countries such as China and India.

Data:

• Here we got some data: The per-hour cost for a worker in an American or European plant is between 15 and 30 dollars, or more, and this is mainly decided by whether there is a worker's union in the plant, the plant's location and the degree of welfare it provides. On the contrary, the per-hour cost for a worker in a Chinese plant is below 1 dollar. The wage level in Mexico and East Europe is about 2 to 8 times that of China, but still much lower than in America and West Europe. Through this data, we can easily find that we Chinese companies have great advantage against most counties. Although this is unfair from workers’ view, and actual wage level fluctuates around the average level, but a 20:1 gap between the West and China cannot be neglected.

• So we can easily find that the low-wage labor is one of the factors which influences

the export of some nations. Because of the lower labor cost and the higher profits, more and more counties choose international trade.

Globalization

1. Labor Standards and Trade Negotiations

2. Environmental and Cultural Issues

3. The WTO and National Independence

Labor Standards and Trade Negotiations

• International trade agreements can improve wages and working conditions in poor countries by incorporating.

• EP: small factories

Environmental and Cultural Issues

• Environmental standards in developing-country export industries are much lower than in advanced-country industries. (Lows & moral factors)

The WTO and National Independence

• In this way the nations can come up with free trade to gain more benefits.

• Improvements in the environment because of the agreement.

• 小组成员：张骥、陆胜杰、徐伟伦、王 江、应麒

• Presentation ：张骥