TRADE IN A GLOBALISED WORLD

Trade In a Globalised World

Trade in a globalised world

“China manufactured every one of the 24 kinds of toys recalled for safety reasons in the United States so far this year, including the enormously popular Thomas & Friends wooden train sets, a record that is causing alarm among consumer advocates, parents and regulators (New York Times June 8th, 2007)”.

The above statement has taken from the New York Times, which has discussed the other side of Globalization and the concept of free trade in a globalized world. Globalization is certainly lower prices, but the collateral damage is not limited to relocations and their impact on employment in the European Union. Indeed, to reduce their production costs and become more competitive, manufacturers are reluctant less to relocate their production abroad and China in particular. There, the staff is not only cheaper, but it also shows them looking less on the quality of workmanship and materials used (Burtless 2007, Pp. 17-45). The hard discounters were the first to invade the market of their products without brands and too often without quality. But a significant retailer has quickly understood the benefits (financial) of such trade. When it does not produce its own products on site, sourcing practice, that is to say, purchases made locally from local manufacturers. And as they are a master in the art of a price squeeze on the pretext of shopping (very) large quantities, made in China has rapidly invaded the shelves.

Chinese Toys and Associated Quality concerns

For China, globalization is often seen as a double-edged sword that brings both, opportunities and challenges, advantages and disadvantages. How to turn disadvantages into advantages in the tidal wave of globalization depends on formulating the correct policies and strategies. If the policies are correct, challenges can be turned into opportunities. China has learnt many lessons and accumulated rich experiences in dealing with globalization from its practice of reform and opening-up. The Security Committee of America Consumer Products today announced the withdrawal of more than 9 million children's toy made in China from the U.S. markets after the presence of substances harmful to the health of their children (Burtless 2007, Pp. 17-45). The committee said that the Games have drawn on lead in paint as well as containing a small magnetic materials may cause harm to health of children, especially if ingested accidentally. For its part, announced that " Thomas & Friends " which is the largest children's toys in the world that the number of games manufactured in its favor on the part of contractors in China, the company is forced to withdraw its toys from different markets, now stands at about 2.18 million a game, with about 5.9 million a game in the U.S. markets.

The drawn games included a number of toys that are immensely popular among children, including Thomas & Friends, Batman, Barbie and Polly Pocket and one of the car games (Yufan 2008, Pp. 319-361). The chairman commented, "Mattel" Robert Eckert on the withdrawal decision by saying that ...