International Labour Division: Features and Effects - Coursework Example

International Labour Division: Features and Effects Name Institution Abstract This paper will be presented in three parts. The first is introduction which consists of definition and the general overview of the concept. The subsequent part will discuss the origin of international labour division in brief and trace the root of the concept analyzing why it spread fast. The third part will describe the features of the International labour distribution. The next will expound the effects of the application of the concept. The conclusion part will summarize the whole discussion, giving the way forward for the implementers of the concept. Introduction International labour division may be termed as an arrangement whereby various parts of production processes are allocated to different parts of the globe. This concept is based on allocating production process according to the production force of every individual or region. Therefore, each region is supposed to specialize in an activity that it will benefit most. The new International division of labour is a creation of globalization. It is the process whereby individuals do not confine themselves in the national boundaries of one country, making the transferability of labour to be easy. The trend of labour transference especially on the global market has become very common. Labour is now moving from Asia to the United States and from less developed countries to developed countries. This is because companies would like to maximize their returns on cheap labour from developing nations. Some companies have gone multinational. These multinationals have established themselves where the cost of labor is cheap (Marshall, 1998). Origin of Contemporary International Division of Labour This emerged because of the orthodoxies of capitalism that entrenched itself in the free international trade. By 1970s, most nations were having open economies. The implications of this system of open economy were extended to labour and other markets (Hereo, 1996). Around 1970s a group of German Researchers diagnosed the need of an International Labour Division. In their thesis, world market was to embrace both sites of production and labour. This was to involve and benefit both industrialized nations and underdeveloped countries. It was in contrast with the traditional one which had only two players; the industrialized countries and the producers of raw materials. Wealthy countries in the north did business mostly amongst themselves. The newly independent less developed nations picked up the idea as the producer of mainly raw materials and Agricultural goods to developed countries. The monopolists from the industrial powers seized the opportunity by establishing themselves in the less industrialized states .They put up ultra- modern industries and processing zones. For imperialist nations to have a grip on the control of the resources of underdeveloped nations, they set guidelines that ensured that they were always in control of them. These policies however, did not go well with these nations. In effort to fight them, developing nations started developing Mutual Corporation in business with socialist nations. Many nations have become integrated in this system; including the former socialist nations, which are now trading amongst themselves and with capitalist nations. Features of International Labour Division The present determinant of distribution of labour is the human knowledge factor. Before the concept of International Labour Distribution was introduced, physical resources determined movement of labour and other issues of production. Human activities have made greater improvement in transport and communication. Currently the privilege of education is not only to the citizens of Northern states but is now fairly enhanced in many nations. As Gryczka (2010) notes, colonialists majorly determined international Distribution of labour in the less developed states. Most of the developing countries tended to lean towards their colonial masters. The masters owned industrial productions in these countries. They controlled the extraction of raw materials and their sell overseas. When economic situations of most of Eastern Europe socialist republics changed, the control of the raw materials was altered. The imperialist policy of self-preservation on the resources was opposed. This led to expansion of Division of labour even to these new states; socialist states and states outside Europe. In the past decade, industrial nation‘s giant corporate have established their subsidiaries in developing nations. This has been so especially in industries that are less technologically oriented but highly labour intensive. The labour and in some cases raw materials in them are cheap. In this way, they are determined to continue with their influence over developing countries because most of tax revenues from these countries are determined by the earning of these corporate. Although their continued existence has been justified with industrial expansion of those countries, critics say that they will increase foreign dependence. Right now, the European socialist countries have a direct relationship with developing countries. There is no need of them going through their colonial masters. They are also determined to guarantee lasting social and economic affiliation. They are not keen to maintain the imperialists’ neo colonialist liaison. Socialistic countries are now providing direct credit to third world countries to come up with their own industries (Szita and Janoz, 1977). Modern nations want to reduce the old industrial countries’ monopolistic nature as they are now engaging socialist nations. Recently there have been increased direct investments by the socialist nations in these countries. Developing countries are shifting the award of National Contracts to the socialist states. The recent developments in the international division of labour have brought the rare resources of the world into limelight. The resources, which are mostly concentrated in the developing countries are likely to be depleted soon .As a result, nations are focusing on how to properly economize them. Corporation with developing countries on the exploration and their extraction plus usage have begun. Impacts of Contemporary International Division of Labour on Patterns of Production and Distribution The most striking effect of the international labour distribution has been paying the workers in less developed countries low income. Most of the workers do not have trade unions that they can use as their mouthpiece to air their grievances. Most of these multinational corporations are established in these countries because of low wages (GEOG, 2010). Gryczka asserts that ecological concern is raising a lot debates whether to allow these multinational corporations to continue their operation in less developed nations or not. Environmental damage is becoming very much worrying. Most of foreign firms do not care about the environments in which employees work. Disposal of industrial wastes and effluents is not being done properly. In most cases, employees work in very poor conditions. In the long run, work related complications and ailments would occur (2010). As a matter of intelligence in nationwide defense, most international corporations have become very protective especially on items that have a link with the military of home country; for instance production of semi conductor electronic items. Superior nations have built up an approach of taking industrial productions that involve less research and development but labour concentrated in foreign country. Most research operations therefore, will be done in home country. The international labour division has brought express overseas investments in developing countries. Scores of multinational firms from the north are now setting up subsidiaries in the developing countries. Trade activities coupled with political ties have increased recently. International specialization is also growing with nations abandoning unproductive ventures. However, soviet bloc’s difference on currency policy has reduced flow of trade between it and the rest of the world (Munck, 2010). For the last 35 years, many countries in the south are now substantial exporter of manufactured goods amongst themselves and with those in the north. However, the northern countries continue to maintain the lead in total exports. Businesses from northern countries have spread technologies in developing countries. Most of developing countries are doing better in tourism exporting businesses. Travelers come all the way from Europe and America. Capital flows continued in either ends; happening in two dimensions. There are those who want manufactured capital goods for defense and others want them to make high returns. The majority of less industrialized states will opt for higher defense goods. European countries import extracted goods in most cases to make higher returns (Szita and Janoz, 1977). According to Xu and Yao (n.d.), International Labour division has only served to internationalize the economy. By 1980, most lending banks and petroleum exporters had incurred a lot debt especially from the lower economies. Taking the approach of division of labour, countries with higher financial capital will be highly placed to produce superior commodities than those with lower capital and hence imbalance will always stay. International trade among developed nations has also advanced. This is being boosted by the fact that many European countries can produce variety of products. Specialty in a specific division of industry has made production of varieties of goods possible. Most firms in these countries make agreements to engage in a particular industry only. Conversely, the gap amid the rich and the underprivileged nations has increased. The southern inhabitants are becoming poorer than before. In fact, dependence on Northern countries has increased very much (Nash and Fernandez-Kelly, 1983). As Munck explains, entrance of former socialist states of Eastern Europe into the scene, has seen more corporation between countries of the former capitalist and socialist blocks than before. Such corporation has yielded mutual benefits giving an assurance that division of labour is likely to go on for a long period. Agreements of business organizations from the two blocks are becoming very common and therefore a foundation for peaceful co-existence is being laid (2002). Conclusion Although International Labour Division has made the countries in the south to be involved and benefit in the processes of production, the major aim of it in reducing underdevelopment has not yet been met. It therefore comes to our attention that automatisms of capitalism are not working to solve the situation. Capitalism alone will not be enough. Developed countries need to put express foreign investments in order to accelerate growth process in these countries. Socialist nations are gaining popularity in developing countries by adopting this approach in addition to the international Division of Labour. References GEOG349. (2010). Empirical correlates to nations’ trade/FDI patterns. New York: Geog 349. Gryczka M. (2010). Changing role of BRIC countries in technology driven International division of labor2. Szczecin: Business and Economic Horizons Hereo, C. (1996).The Canadian Labour Movement: A short history. Ottawa: James Lorimer & Amp Company. Marshall, G. (1998). International division of labour. A Dictionary of Sociology. Munck, R. (2002). Globalization and Labour: The New 'Great Transformation. New York: Saint Martin Press. Munck, R. (2002). Labour and Globalization: Results and Prospects. Liverpool: Liverpool University Press. Nash, J.C., Fernandez-Kelly, M.P. (1983).Women, Men, and the International Division of Labor. New York: New York Press. Szita, Janoz (1977). Perspectives for all European Cooperation. Budapest: Kossuth Konyvkiado Xu, J., & Yao Y. International Division of Labour and Global Imbalances. Peking: Peking University Press. Read More