Global Business Environment - Coursework Example

Global Business Environment Global Business Environment Why do African workers suffer from cheap Chineseproducts? African workers in have been suffering significantly due to cheap Chinese products being imported into their countries. For instance, in South Africa textile industry, there are cheap Chinese imports imposing a threat in their local industry, whereby there are claims that approximately seventy five thousand workers have lost their job since 2002 (Esterhuizen, 2012, 1). On the other hand, this has led to deterioration of business between South Africa and Sub-Saharan Africa, whereby this has led to a loss of nine hundred million dollars.

Nevertheless, all problems are being blamed upon the increasing number of imports into South Africa. According to a report for University of East Anglia in Britain, Chinese products into South Africa have cost them seventy seven thousand jobs for the last one decade. Besides, these Chinese imports are leading to slow industrial production, whereby it grew by fourteen percent from 2001 to 2010; instead of the anticipated growth of nineteen percent (Mabuse, 2011, 1). In fact, this is attributed to loss of market shared by South Africa to China, whereby making the exports to Saharan Africa lower than expected.

In this case, one of the crucial ways through which workers in African countries have been suffering due to Chinese products, is their contribution to the problem of unemployment. Furthermore, this has raised concern among official, which have experienced the impact of these Chinese products in their country. For instance, South Africa recorded 25% rate of unemployment due to these Chinese product (Maswanganyi, 2012, 1). Obviously, this has an adverse effect on African workers given that it subjects them to cases on reduction of minimum wages, and job insecurities.

In addition, the retrenchment of approximately 350 000 workers in the manufacturing industry since 1990 has increased to 1.2 million job by 2010 (Mabuse, 2011, 1). This significant loss of employment by workers in African countries can be attributed to displacement of domestic production through imports from China during the period between 1992 and 2010 (Mabuse, 2011, 1). In this case, the number of imports from China has grown between 1992 and 2010, where it was recorded 24 117in 1992 and by 2010, the figure had risen to 77 751 (Adisu, 2010, 23).

Ten industries in South African, which have increased level of Chinese imports, are attributed to conventional labour intensive sector, which entails textile and clothing, leather products and furniture. Therefore, imports of these Chinese products are imposing a significant competition in these domestic industries, whereby increasing their likelihood of retrenching workers due to decreased production and high operating costs. Lastly, challenges experienced by these workers in Africa are not constrained to competition imposed on domestic products by Chinese imports.

Idun-Arkhurst & Laing (2007, 3), explain that the flow of these Chinese products has led to conflicts over labor practices and market strategies applied by various industries in African countries. For instance, increased preferences of hiring Chinese national, while the African workers are expected to work for long hours by Chinese managers has resulted to conflicts (Sautman & Hairong, 2007, 114). Moreover, these labor conflicts are caused by the practices that are introduced by these Chinese managers, whereby they are conflicting with the local labour laws and culture. 2. What would you plea to the government if you are an African textile manufacturer?

As one of African textile manufactures, I would call for political solutions for this problem, which is resulting from Chinese imports; in fact, it has also resulted to adverse effects on South African job market. Moreover, I would urge the government to impose countervailing duties for trading partners subsidising their exports, since this has been permitted by World Trade Organisation rules. On the other hand, I would urge the government to adopt more strategies for protecting the textile industry by placing dumping or countervailing duties on Chinese imports (Maswanganyi, 2012, 1).

Therefore, by focusing on ways to solve these problems, the government is expected to approach it through politically in order to alleviate problems caused by these Chinese products such as increased competition and destruction of job opportunities. The government should pay attention to the rising competitive capacity of these Chinese products, which has an adverse effect on local industries. Therefore, the government can impose duties to assist local industries in short-term, while imposing dumping tax of this Chinese products.

However, the government cannot stop the trade competition since it is global. In addition, the government should focus on seeking ways through which skills, education and technology can be improved in order to support the manufacturing sector. References Adisu, K., 2010, “The Impact of Chinese Investment in Africa”, International Journal of Business and Management, 5(9), p. 3-9, Retrieved from: http://www.ccsenet.org/journal/index.php/ijbm/article/download/7301/5671 Esterhuizen, I, 2012, “SA exports 'crowded out' by Chinese products”, Engineering News, Retrieved from: http://www.

engineeringnews.co.za/article/sa-exports-crowded-out-by-chinese-products-2012-08-30 Idun-Arkhurst, I.I., & Laing, J., 2007, The impact of the Chinese presence in Africa, African practice, Retrieved from: http://www.davidandassociates.co.uk/davidandblog/newwork/China_in_Africa_5.pdf Maswanganyi, N., 2012, “Call for limits on Chinese imports”, Business Day live, Retrieved from: http://www.bdlive.co.za/business/trade/2012/08/17/call-for-limits-on-chinese-imports Mabuse, N., 2011, “South African workers pay the price for cheap Chinese imports”, Cable News Network, Retrieved from:http://edition.cnn.com/2011/BUSINESS/05/25/china.imports.south.

africa/index.html Sautman, B., & Hairong, Y., 2007, “Friends and Interests: China’s distinctive links with Africa”, African Studies Review, 50(3), 75-114