33 marker: Evaluate the implications of a globalised labour market on development
The impact of globalising the labour market through globalisation of trade is that it creates an international division of labour. This means that the high paid and low intensity jobs are found in the MEDC’s and the low paid high intensity jobs are found in the LEDC’s. For instance the HQ for Apple is in America, but the manufacturing factories are in China and the East. 1. +Good because we are getting a globalised labour market which allows filtering of all the different industries to those who can so them best, but also to different culture. For example manufacturing in Eastern Europe and Asia, Management in the West etc Lots of different otherwise isolated cultures can come together through this. 2. +This division of labour has meant that new jobs are being created. For instance in the past Apple used to manufacture in America incurring high costs, so by creating new jobs abroad they can keep costs down whilst employing vast amounts of people into their company. This opens up employer prospects 3. + Emergence of the new middle class because of more people across the world becoming employed. They have more disposable income and development prospects through investment. They could be entrepreneurial and start up new businesses around the globe. 4. +Neo-liberals would argue that because of this trade and globalisation of business wealth will trickle down to more and more people heightening the overall money and development of the world. 5. Although this creates a two tier system, the bad jobs are given to the LEDC’s with poor pay, poor conditions and little to no healthcare or education. For instance the factories in China are factories with long hours, mostly employing women who will then not get educated to job into work that is better for them. This globalised labour market had gender implications too. 6. Because the poor jobs are in the LEDC’s then there is no room for development because there will be less education and the population will be set back in terms of skills and never make it up to the level of high tech industry of the west and Asian tigers.
Dependency theory would argue that the globalised labour market would bring about an exploitative division of labour. TNC’s are not in developing countries in order to develop them, they are there because of cheap labour in a country with low tax and little to no regulations on their activities. TNC’s have created a greater oppressed labour force, and take advantage of women and children who are not educated enough to understand their exploitation and have little aspirations. If these LEDC’s countries set up labour laws and rights for workers then TNC’s will leave and hold the balance of power over a country. TNC’s are more powerful than a state and this is an impact of a globalised labour market. For example Primark uses sweatshops in SouthEast Asia which are unregulated, lots of people depend on these jobs and if Primark pulled out then they would all lose out so they accept the harsh working conditions. 1. +Good as it can explain the power relationship between TNC’s and a country they are in 2. +Good as it can explain why TNC’s move bases when a country ups the regulations 3. +Explains why there is an international division of labour, TNC’s take advantage of the LEDC’s and thus the LEDC’s are stuck in factory work and agriculture. For instance Nestle has set up in Vietnam to manufacture coffee, hundreds of farmers rely on nestle to buy their cocoa beans, in fact even the state encourages new coffee farmers to set up to make profit and encourage nestle to stay. 4. Cannot explain countries would lower their regulations and rights to attack TNC’s considering they are so exploitative, surely countries would all higher them so that TNC’s would have to choose one and work legally. 5. Cannot explain why TNC’s would set up healthcare and education systems for families of workers if they were so exploitative.
The international division of labour as result of a globalised labour market promotes healthcare, education and skills development. For example Unilever produces tea in some LEDC’s but also helps the children of their workers through healthcare and education facilities. Healthcare and education would mean that there is a more education and healthy work force in the future. 1. Where have the TNC’s moved from? TNC’s move into LEDC’s and exploit the labour but they have moved from MEDC’s where the costs were high, meaning that there is a lot of unemployment in MEDC’s as a result. These unemployed move into insecure service sector jobs as a result. 1. Money isn’t staying in the LEDC’s where TNC’s move to. For instance Nestle in Vietnam do not invest back into Vietnam, they take the raw product manufacture it to add value and then sell it back to the West for profit, the profits go back into the HQ of the TNC’s and not the country. 1. Unilever is also found to use child labour on their tea and coffee plants. For instance they may provide education and healthcare for the employees that come to that country for the TNC, but they take advantage of locals who are poor and uneducated and allow them to work on the plantations.
TNC’s as a result of a globalised labour market provide a good opportunity for development. For instance there are progressive job opportunities like promotions and overseas work and as a result the middle classes rise up because they get these jobs and can have careers, e.g in Apple. The aspirational nature of progressive jobs encourages those in work to work hard because of meritocratic values of TNC’s. Those in schools will work harder to get into TNC’s and thus value will change and development will speed up. For example, Parsons a modernisation theorists argues that if traditional values of ascription and collectivism change to individualism and achievement then development will occur because people will be willing to move for work and work hard in their industry to progress. 1. However if there is a crash in one industry it can impact globally. For instance if all efforts and values are put into working in call centres for 2. The people who get into TNC’s will be able to support their families on their income and so people will develop themselves, and on a large scale will develop a country. E.g in India the middle classes actually aspire to work in call centres because of the progressive nature of cold caller to manager etc, which can open up opportunities in other industries and accumulate a decent wage. 3. The consequence of this though is that high skilled english speaking workers will be offered jobs abroad which will mean that they will leave the country resulting in a brain drain. For instance 30 million of India’s diaspora are their most educated which now live in developed nations.