American Asian Production Collaboration - Research Paper Example

YourFirst YourLast 20 April Introduction Most American products are traceable back to production facilities located abroad, mostly in Asian countries and other undeveloped countries all over the world. A considerable number of the clothes they put on, the everyday technological gadgets and the toys that most children play with are manufactured somewhere in Asia. Trade relations with main emerging nations like Brazil and Malaysia is apparently central to Americas individual sustained economic growth because its total industrial and manufacturing investments in such nations are in hundreds of billions of dollars. Furthermore, production plants in those countries work on a contractual basis with American corporations (Rock 26). On the other hand, most Americans are not aware that their desire for shopping drives an extremely controversial business. The availability of cheap unskilled labor within these countries prompts most American corporations to establish their production facilities within their boundaries. However, the controversies surrounding these corporations drive the ethical and moral questions posed in relation to their operations within these countries. Analysis American clothing and electronic companies have continuously built production lines abroad from time immemorial. Harsh working conditions, poor pay and unfair commanding managers have characterized these production lines located in under-developed countries. These corporations have additionally employed the services of young, unauthorized minors in their factories. Recently, many multinational corporations from the United States have resulted to construction of these factories in undeveloped countries as a strategic move to expand their businesses (Gupta n.d). Most sweatshops operational in the world currently are in the Asian continent. Looking at the issue of Sweatshops from a purely commercial point of view, it is a very profitable industry because they benefit from low-wage labor in third world nations and considerably decrease manufacturing costs. Numerous footwear and textile companies from the United States have been heavily associated with offshore operations in underdeveloped countries. Big brand names such as GAP, Levis and Nike have all been heavily associated with countless contraventions of basic requirements for the recommended reasonable working conditions in their manufacturing plants (Dickson 48). All the three named companies’ client bases and main offices are situated in the United States while the sections involved in the production of their goods are situated in Asia. These corporations have been condemned for being active players in the misuse of employees for the reason that they fall short of correcting the manufacturers’ unprofessional conduct, of which they are conscious of but over and again maintain are difficult to correct. An assessment internal research was done by Nike, for example, discovered that almost one-third of the 165 production plants manufacturing a product called ‘Converse’ were unsuccessful in meeting the company’s quality benchmark for production. The Horrible Face of Development and Industrialization A common characteristic of all sweatshops’ labor is that the laborers are insufficiently compensated for their work, given the harsh working conditions they tolerate. In countries like the Philippines and Taiwan, the minimum wage level is considerably lower than the minimum average wage in the United States. The average minimum wage in Taiwan is 1.02 dollars per hour while it is around 8 dollars in the United States. However, these estimates are not followed when it comes down to actual wages, and the average take-home salary is significantly lower than the estimates given. Numerous Asian emerging nations such as Malaysia and China have set official wage levels for workers; however, inadequate controls and unwillingness to enforce these laws have provided a haven for sweatshops to thrive in these countries. Given that turnover is very high, sweatshop employees are not assured of these minute earnings in the long term because sweatshop managers employ and discharge laborers at will, as unstable production requires change, with little or no consideration whatsoever for the workers’ well-being or job security. These employees have no financial safety and are prone to violence and abuse. Employees in an Indonesian Converse plant complained that their managers and supervisors subjected them to insults, calling them pigs and donkeys while throwing shoes at them (Powell & Skarbek 269-270). In these settings, getting the real picture of the level and severity of these abuses is rather hard as fear of victimization discourages employees of such facilities from exposing such events. Additionally, most sweatshop employees are children; about one in nine children in the Asia-Pacific is aged below the recommended working age. The Common Dilemma: A Case for Sweatshops In spite of the anticipated growth of sweatshop operations, the average individual in the first world countries is disgusted upon the unfavorable working environment related to it. In the recent past, there were calls to boycott products and merchandise from companies associated with sweatshops operations. A good example is Wal-Mart’s Kathie Lee clothing line. Upon the discovery, that its merchandise was being manufactured from sweatshops, United States activists articulated their loathing, and Wal-Mart Company terminated all relations with the producers, ultimately closing down the said production houses. This looked like a triumph for the activists; however, the Asian immigrant employees working in the closed sweatshops were infuriated (Bartley & Child 436). Workers have repeatedly articulated their worry at the closure of even the most miserable sweatshops, and the unvarying cheap labor supply from third world countries is linked to economic conditions and the need to earn a living. These individuals view these as economic opportunities to earn a better living, and the need to work overshadows their hatred to unfair working circumstances. A number of the world’s top financial experts have referred to sweatshops as an important step in the development and technological advancement. They have noted that sweatshops activities in consumer goods production such as shoes and electronics for export are an important initial step towards financial and economic growth in third world countries. Many scholars attribute the growth of the Asian Tigers to these sweatshops. The United States substantial foreign direct investments in the third world Asian nations not only add on to their capital base but also facilitate the movement of technological skills and managerial practices. In addition, it provides a right of entry to global marketing systems, all of which are remarkably supportive to these emergent economies. The spontaneous opposition to sweatshops is founded on the fact that sweatshop workers are worthy of enjoying a better working environment. It is also unjust to deprive these workers their fair share of the money that they toil to earn. It is, therefore, unfair to such employees of these sweatshops to continue to suffer given the state of their working conditions. This is because even the very corporate company shareholders who promote labor demand in these sweatshops cannot disregard the said conditions from a very unbiased and fair-minded point of view. Given the disparities that exist between the United States economic purchase power and the Asian capacity to match the level of financial strength, people in these Asian countries, more so the emerging nations are not as good as their counterparts economically from the United States, when all things are held at a constant. Economists argue that in such a circumstance, the best moral direction for such a situation would be to maximize the benefits that accrue from the relations. The Normative Scenario The relationship between the United States government and most of the underdeveloped nations, especially from the Asian continent form the base of their financial cooperation. These relations are fundamental to addressing the contentious subject of ethical behavior and the operations of these industries within these countries. Looking at these issues wholesomely, it appears that the most profound ethical challenge involves the negotiation between the two parties in the middle of conditions that make them incompatible. The contentious subject of the operations of these corporations is an example of how these countries are faced with difficult decisions to make on the trade in the short term while balancing various other issues that affect the people they represent. According to Razzak and Bentour, all undeveloped countries and especially from the Asian continent are in dire need of foreign direct investments (FDI) that propels their economies, thus attracting foreign companies such as Wal-Mart and Nike. These companies are enticed into investing in these countries because of their cheap unskilled labor. These companies’ investments attract cheap unskilled sweatshop labor, and the Asian emerging nations governments seem to condone human rights violations in such factories while allowing child labor to go on undeterred. Conversely, imposing a total ban on the operations of these corporations does not benefit either side in the very long run. In fact, studies have revealed that putting a total ban on such ventures would hurt the investing companies financially, but the effects would be more profound on the host countries and their economies (Arnold and Bowie 168). Ethical Questions The bigger ethical subject matter is if the United States economy is advancing at the cost of the underdeveloped emerging economies, and the factors that determine the morality of the state of affairs. Recent literature shows that in relation to the current state of affairs, employment opportunities provided by these corporations is at least ethically vague and at the very best allowable, particularly if an individual is allegedly worried about the wellbeing of the employees. Regardless of the fact that employees prefer to be employed rather than be out of employment, it is clear that the current employment conditions within these companies are outrageous and should at no time be encouraged. Therefore, employment in these corporations given the current economic dynamics may be allowed to be practiced for the moment, but the society and the government should never allow them to be a normal practice. This delicate difference between realistic and normative point of view should not be ignored; moral issues function on the two fronts, even as each may produce very diverse proposals in these companies labor subject. Conclusion The issues that revolve around labor opportunities provided pinpoint the ethical problems that face the United States multinational corporations. The need to address these issues is flanked by striking a balance between the associated expenses and the rewards that are resultant from their exchanges. The things that are done now are not at all times compatible with what ought to be done even though it is important that we keep ourselves focused on the latter. A nation is as good as the current state of affairs of its people. Similarly, a company is as good as the current state of psychological well-being of its clients. Even as these big companies aim at increasing sales and maximizing profits for their shareholders, these corporations cannot overlook the ethical duty of respecting and standing for the most basic human rights, and therefore they must relentlessly work at merging these contradictory issues. Works Cited Arnold, Denis G., and Norman E. Bowie. Sweatshops And Respect For Persons. Journal of Philosophical Research 30.9999 (2005): 165-188. Web. Bartley, T., and C. Child. Movements, Markets And Fields: The Effects Of  Anti-Sweatshop Campaigns On U.S. Firms, 1993-2000. Social Forces 90.2 (2011): 425-451. Web. Dickson, Marsha A. US Consumers Knowledge Of And Concern With Apparel Sweatshops. Journal of Fashion Marketing and Management: An International Journal 3.1 (1999): 44-55. Web. Gupta, Vrinda. Are US Multinationals Making Rational Offshoring Decisions? A Gravity Model Approach. SSRN Journal n. pag. Web. Powell, Benjamin, and David Skarbek. Sweatshops And Third World Living Standards: Are The Jobs Worth The Sweat?. Journal of Labor Research 27.2 (2006): 263-274. Web. Razzak, Weshah A., and El M. Bentour. Do Developing Countries Benefit From Foreign Direct Investments? An Analysis Of Some Arab And Asian Countries. Review of Middle East Economics and Finance 9.3 (2013): n. pag. Web. Rock, Michael. Public disclosure of the sweatshop practices of American multinational garment/shoe makers/retailers: Impacts on their stock prices. Competition & Change 7.1 (2003): 23-38. web. Read More