... She started off modestly by setting up a small scrap paper brokerage in Hong Kong in 1985. By 1990, she realized that Hong Kong’s market was too small for her ambitions, so she moved to the U.S. and started a paper trading company called America Chung Nam. She was able to collect paper for recycling from all over the US and ship it to China. She was able to keep cost down by using empty shipping containers that were used to bring imports to the US and most of the time they returned back to China empty. By 2004, the company, which had shipped 2.6 million tons of recovered paper to China, was named the top US exporter to China by the Journal of Commerce. Cheung was able to become successful in China where established paper companies have failed because she believed that one day China would be like Europe or the US. That is why she started to invest in the first paper machine in Dongguan with an international approach, meaning that she imported the machines from overseas, components from the US and Europe, and also the scale of the machine were much bigger than she peers at that time. When she entered the market, the paper industry in China was strewn with manufacturers who were typically small, inefficient and environmentally unfriendly. Her vision for Nine Dragons was the opposite of the market trend. She wanted the biggest, most efficient and environmentally friendly paper company in the market. By establishing good relationships with the government and by constructing...
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...emphatic on this point: no country, ever, should run up any kind of trade deficit, much less the trade deficit on steroids we are running. Geogehegan talks about that two lessons can be taken from this theory that is labor market doesn’t work and new institutional arrangement is needed to get us out of the debt. He talks about labor movement is justified if it can get us out of debt. Also, we should set up the wages that doesn’t require us to take any loans. Keynes points out if we lower the wages we lower the demand, and company will not hire more workers. In other words, if we lower the wage less people will go to college to earn almost the same as they can without going to college. The professor of economics in University of Chicago, Raghuram G. Ragan point out that middle class never have enough paycheck, so they have to borrow money to run up visas and to carry out mortgages. Ragan says we don’t need equality of income as long as we have equality of spending. For example, china export too much and spend too little whereas, the US spend too much on import and make too little in the U.S. Therefore, to stabilize the economy we need higher wages and lot of public work, so that we don’t have to borrow to get to the right level of aggregate demand. In the past forty years the U.S. average hourly rate has dropped by 8 percent and the output per worker has risen 400 percent or more,...
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...FOXCONN ANALYSIS A startling 17 young workers attempted or committed suicide at the Foxconn production facilities in China between January and August 2010 attracted worldwide attention. This article looks at the historical development of Foxconn Technology Group as a case to reveal the advent of rapid capital expansion in China and its impacts on Chinese workers’ lives. It also provides an account on the social and political origins of the advent of monopoly capital in China through a detailed study of Foxconn production expansion. As a legend of capital expansion in manufacturing industry, Foxconn is important and typical of its speed and its scale in the process of capital accumulation on all regions of China. We attempt to look at this miracle of capital by understanding the enigma of global capital, the nature of the transformative state, and the Chinese growth model that results in rapid capital expansion but precarious working conditions of workers. At stake, we argue that under the global competition context a strong political regime with a divided nature and the making of an unfinished working class contributed to the advent of monopoly capital and the tragedy of working lives. The third stage is the advent of monopoly of capital by merging as well as by relocating their production facilities in all regions of China by particularly tapping into China’s go-west development strategy in the 2000s. The suicide wave in 2010 created a strategic moment when it further expanded...
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...provides an business opportunity for a leading company in Human resource management, the ExcelNet, to get involvement for processing these tasks and expand the business over the China. This report will focus on different targets stated in the five-year plan and analysing each targets, providing advices for how to enter the China market by providing human resource services to the China government. Content 1. Introduction 2. Findings and Discussion 3. Recommendation 4. Conclusion 5. Reference 6. Appendices Introduction: The chosen company is ExcelNet, which is a Human Resource consulting firm. It is a leading company in Human Resource Consulting Services and consist of professionals in different sections, providing recruitment, outsourcing, diversified human resource management solutions mainly in Hong Kong and China. The ExcelNet has provided such service to more than 400 clients, it means that the ExcelNet has many experience and skills in the Human Resource Management. It is large enougth for expansion in the China, a huge market with 1.3 billion populations. The ExcelNet has already setup a department in Mainland China and served government departments, public companies and both Small and Medium-sized companies. That means the company is familiar with the Business environment in China. As the goal of 12th-FYP focus on enhancing the competitiveness over the world, it is critical for proccesing by human resource restructing because every project and business need...
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...China’s One-Child Policy Is Crippling Industry: Low-margin businesses are suffering from a shrinking labor pool and rising costs. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/magazine/chinas-onechild-policy-is-crippling-industry-09082011.html China’s One-Child Policy Is Crippling Industry: Low-margin businesses are suffering from a shrinking labor pool and rising costs. [pic] By Kevin Hamlin Lin Chang Jie is battling to save his family’s business, which makes towels, cushions, and robes in the eastern Chinese city of Ningbo. The main threat he faces is a dwindling supply of workers, which forces him to pay higher wages. “I have to find a new way,” says Lin, 29, who is attempting to transform his Dejin Textile into an online fashion retailer in order to shrink headcount and keep the business from closing. “Wages are going up, up, up,” he says. “If we don’t like somebody’s work we can’t say anything, in case they leave.” Manufacturers such as Lin are caught in a demographic trap. China instituted a one-child policy in 1979 to constrain population growth and foster prosperity for the next generation. The byproduct of that policy is an accelerating decline in the pool of young and largely unskilled labor that is the mainstay of mainland factories churning out low-margin goods such as clothes, toys, and furniture....
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...with the leading edge in athletic sneakers, apparel, and sports equipment in the world. Nike has been ranked the most powerful sports brand by Forbes magazine, in early 2011. Nike started out as a small distributing company for Asics and now has become a global success. In 1964 Bill Bowerman, the coach of the track and field team for the University of Oregon, as well as one of the runners Phil Knight, started distributing running sneakers for the company “Onsitsuka Tiger” (now known as Asics), in the back of Phil’s car. With profits increasing and popularity growing, by 1967 Blue Ribbon Sports was opening their first retail store in Santa Monica, California. During 1971, Blue Ribbon Sports started to expand, and Phil Knight and Bill Bowerman started preparing their own footwear line. The infamous swoosh was developed in 1971 by Carolyn Davidson. This was the start of Nikes journey to becoming the most powerful sports company in the world today. The first shoe released to the public was a soccer shoe named Nike, which was released in the summer of 1971. Early 1972 the first line of Nike shoes was released. In 1978 Blue Ribbon Sports officially renamed itself Nike. The waffle design was Nike’s first self-designed product. Bill Bowerman and Phil Knight started experimenting with different out soles to increase traction and efficiency. The waffle trainer was a hit. By 1980 Nike captured 50% of the United States shoe market and went public. Nike’s success continued to grow exponentially...
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...Have you ever heard of Foxconn Technology Group and its founder and CEO Terry Gou? It is the largest exporter out of China. Foxconn is a Taiwanese contract manufacturer employing 920,000 Chinese workers across more than 20 mainland factories. Its business is fuelled by the United States’ and the world’s hunger for high-tech gadgets and toys at rock-bottom prices, share-holders demanding solid profit margins, and workers eager to move up the economic ladder. Foxconn has been the most trusted name in contract manufacturing services. Some of the major companies Foxconn makes contracted products for include IBM, Cisco, Microsoft, Nokia, Sony, Dell, Hewlett-Packard, and Apple. If you have a PlayStation, computer, or smart phone there is a good chance that all or pat of it was made by Foxconn. It is the only manufacturer that makes the ipad and one of two producer of the iPhone. Foxconn has a plant in Houston, Texas, that employs around 1,000 workers, specializing in high-end servers for corporate clients. Gou plans to move additional automated production to the United States and shop its goods to China. Foxconn is the second largest exporter in the Czech Republic, and it also plans to expand to Slovakia and Turkey and may lead to plan to expand Brazil’s electronics industry. Gou started Hon Hai Precision Industry Company, the anchor company of Foxconn Technology Group, in 1974 at age 23 with a $7,500 loan from his mother. He has been characterised as always thinking about...
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...Running head: Jobs Jobs Author Author Affiliation Jobs Introduction The United States is the largest manufacturing economy in the world because it produces 18% of the products that are manufactured globally. In the United States, manufacturing supports around 17 million jobs, and manufacturing is what drives America even today (Terry, 2013). The most recent recession has hit the manufacturing sector in the US very hard, and new layers of red tape and more tax burdens are driving more manufacturing jobs out of the US to overseas destinations thus affecting the United States global competitiveness. Tax burdens on the manufacturing sector in the United States have made manufacturing in the US more expensive than elsewhere in places like China (Terry, 2013). Added to this is the fact that the trade unions in the US are driving up manufacturing costs by increasing the pay and benefits of workers in unionized companies. This has resulted in unionized companies facing more financial losses than non-unionized companies, thus forcing unionized companies to move out their manufacturing bases to places like China (Sherk, 2009). Employer-friendly unions can bring back manufacturing jobs to the US, and this can be achieved through changing the the attitudes, policies and practices of most trade unions in the US. How Can Employer-Friendly Unions Bring Back Manufacturing Jobs To The US? Most businesses run on profit motive, and...
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...Running head: ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 1 Ethics Behind Apple and Foxconn Relationship Maryana Didovych The College of Westchester ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 2 Abstract This paper examines Apple, Inc.’s relationship with one of its biggest suppliers, Foxconn Technology Group. Recent growth in suicide incidents at Foxconn factories again caught media’s attention. Whether Apple’s decision to stay in business with Foxconn despite these incidents is ethical or not is examined using Traditional 5-Question approach. Contradictory evidence is also examined. Based on the result of 5-Question approach and reviewed evidence it can be concluded that Apple’s decision may indeed be unethical. Recently published evidence suggests Apple and Foxconn are addressing several issues, but close monitoring of the improvement process is required to ensure success. ETHICS BEHIND APPLE AND FOXCONN RELATIONSHIP 3 Ethics Behind Apple and Foxconn Relationship One of the biggest suppliers and manufacturers of Apple Inc’s (Apple) products recently has been involved in scandals concerning working conditions of its factory workers. This company is called Foxconn Technology Group (Foxconn). It operates in more than 40 research and development centers as well as manufacturing facilities in Asia, Russia, Europe and the Americas. According to Pratap, Radhakrishnan and Dutta (2012), Foxconn is “the world’s biggest contract electronics manufacturer, taking...
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...Overview What responsibilities do businesses have? Who takes priority when decisions are made? Are shareholders the most important to consider, or is it the customer? Should a company simply meet the required regulations, or attempt to go above-and-beyond the requirements? All of the questions involve corporate social responsibility. Corporate Social Responsibility can be defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (World Business Council for Sustainable Development). Cash is King Many organizations and individuals feel that businesses simply have the responsibility to make profits (Friedman, 1970). These companies or individuals place emphasis on satisfying the desires of its shareholders, primarily through high profits. Generally, these companies will spend only enough money on social responsibilities to comply with regulations. The money spent going above the required amount is considered to be spending someone else’s money. “Insofar as his actions in accord with his "social responsibility" reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money” (Friedman, 1970). They feel that employees can individually donate their time or money to contribute to society. CSR is Overrated Ultimately...
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...the wealth of the Chinese people. Not only were Chinese wages low, but also so was its unit labor cost, that is, wage as a percentage of labor productivity Foreign investors in these zones received special advantages, ranging from concessionary tax policies to exemptions from export and import duties for equipment and instruments. Chinese state owned enterprises (SOEs) who received subsidies in the form of grants and tax breaks but were running at a loss were under particular scrutiny and were expected to phase out within five years as stipulated by the Agreement on Subsidies and Countervailing Measures China’s economic development had been and continued to be driven by industrialization an increase in the share of manufacturing and a decline in the share of agriculture as a fraction of GDP The Chinese labor force was on of the indispensable factors in achieving economic advancement The workers spent their wages they increase the demand for consumer products contributing to further industrialization. In China the surplus of workers was so great and its industrialization as a catch up economy so rapid that the necessary demand came not only domestically but also crucially from abroad China’s rise as a manufacturing center was due to a number of low cost advantages High domestic rate of investment; the opening up if the economy to foreign direct investment; a surplus of labor from dismantled SOEs; continuous economic reform policies; and the emergence of new types...
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...they do not have the same labor laws as the United States, or the same type of EPA guidelines that the USA follows. This allows the Chinese factories to pay their employee’s whatever they want and pollute the environment however they need to in order to make money. This is the main reason that US companies are shipping their jobs overseas. Personally, I think that they need to put an end to these types of factories, or have more supervision on the manufacturing floor. Here in the USA, we like to preach the means or rights of equal treatment and protest those companies taking advantage of their workers. However, we take away American jobs to hurt our worker’s and send them over-sea’s to hurt other people by working them into abuse. As you are reading this, just realize that in China right now, there are companies that are running sweatshops out of their factories. These sweatshops are running humans to insane conditions and pushing them to their limits. Some of these conditions include employee’s not getting paid overtime, being forced to hit an impossible quota in order to receive bonuses, getting pay deductions for no reason, or even worse getting demoted in pay with maintaining the same job that they were originally promoted for. There are even companies imposing timed bathroom breaks for women because they feel that they take too much time washing up when they are menstruating. The United States government needs to impose an import tax that would stop the wealthy companies from...
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...Industrial Relations in China :A Case Study of Foxconn Suicides Abstract As globalization affected the whole world, the contradiction between leaders and labors has become a world-wide problem. In China, a series of employees’ suicides attracted the public and media’s concentration to consider this problem. A Taiwanese electronics corporation, is acting as the protagonist in this issue and now earning an internationally notorious reputation of running sweatshops. This paper analyze the cause of ongoing trend of exploitation of workers in China with the example of Foxconn, and examine the reasons behind those suicides from the perspective of management, workers and related laws. Based on the fundamental information of China, to illustrate my own analysis about this case from ethical and legal point, and to criticize Foxconn’s management strategy, industrial relations and the gaps of Chinese laws. Keywords: workers’ exploitation, China, Foxconn, suicides, inustrial relations 1. Introduction 1.1 Background and significance of the topic With the rapid development of Chinese economy and the increasing globalization of business competition, the various types of enterprises in China have been booming development, rapid increases in the number and size of foreign investment in China to hire to do business, and further reform of state-owned enterprises increase, the private sector, the number and the number of employees of private enterprises in recent years, is also...
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...Is Wal-Mart Good For America? Introduction We all want to do what is best for our families, our friends, ourselves and our country. However, our nation’s number one corporation is under constant ridicule for being a negative part of the American way. Wal-Mart is the overall number one on the fortune 500, over taking Exxon Mobile after a one year slip to the number 2 spot. However Wal-Mart is constantly being ridiculed by media and everyday citizens, its employees included. These opinions are often brought forth because of four major issues; the pay and benefits packages of Wal-Mart employees, the quality and buying of their goods from China, big box corporation killing local businesses ,and Wal-Mart taking jobs away and not creating new, stronger jobs .To answer each question I will use research from many different mediums, financial statements, and my personal experience as a three year Wal-Mart employee, and present facts and numbers that would be crucial in making an educated decision, following this information I will present what I believe is strong and weak about Wal-Marts current way of doing business, and then offer my solutions to answer these questions and answer the big question. Is Wal-Mart good or bad for America? Does Wal-Mart Treat Their Employees Right? As a Wal-Mart employee, I have gotten to see how things are ran, how we receive the goods, how they are taken to the floor, how it is stocked, and cleaned. I have been an overnight stocker at one of the...
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...Is a Scholarship Enough? There are approximately 319 million people living in the United States, but there are approximately 482 million people in China that work in sweatshops. These people make less than two dollars a day. Often times hundreds of people are working in one big room, smells of sweat, tears, and a low sense of moral fill the air. We are talking about hard working people that work hard for their money, but get treated so poorly. A hardworking man goes and clocks in to make a better future for himself, and he has enough to barely get by on a day to day basis. This is just inhumane and coldhearted. It is easy for us to look down on China for doing this to their people, however; we treat our student athletes in the same manner. These student athletes struggle daily with the same problem. Juggling at least twelve hours of credits, with at least ten hours of practice a week, not including games. How can a student athlete possibly have time for a job? These students barely have enough time to study. Practice is often times long and hard, and once that is over with it is time to study or do homework. Sleep? As a student athlete there is no such thing as sleep. Sleep is just one of the thousands of things college athletes have to worry about. Also, earning extra money can be an almost impossible feat with the lack of extra time in a week. In a paraphrase of a famous rapper named Jay Z, “College athletes have 99 problems, and money is one.” When it comes to college, people...
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