CHEAP LABOUR EXPLOITATION

If a Multinational Company Moves its Manufacturing Activities to a Country Where Labour is Cheap, is This 'Exploitation'? And if Not, Why Not?

If a Multinational Company Moves its Manufacturing Activities to a Country Where Labour is Cheap, is This 'Exploitation'? And if Not, Why Not?

Introduction

The paper aims to investigate the nature of impact MNCs' international manufacturing operations may have on the cheap labour. In order to scrutinize the prevalence of exploitation, if any, the paper attempts a sequential flow of information to generate authentic argument and information in agreement to the notion. Firstly, the paper discusses business and labour rights in an international perspective.

Secondly, the paper oversees recent availability of cheap labour in developing countries and approach of MNCs to gauge this pool of cheap labour. In addition to this, paper collects evidence by outlining the impact of MNCs on cheap labour and resulting controversies of the business arena. Finally, the paper summarizes information to drawn a genuine opinion and findings on the subject matter.

Discussion

With the advent of twenty first century, new spheres of business and economies appeared on the surface of global map. Various economies went under the transition process to become a developing and emerging economy and provide trade opportunities to rest of the world. The progressive advancement was associated with the future of businesses, as well as workforce strengths in these economies.

From a business perspective, 21st century modernized business practices by introducing the trend of globalization and international trade that allowed businesses to go beyond their transnational boundaries and explore niche markets by satisfying the need of global consumers. For workforce strengths, global reach of businesses increased the chances of employment and better living (Cohen, 2007, p. n.d.).

However, the reality was certainly opposite to it because the inclination of MNCs towards these developing economies was more focused on making more out of the cheap human resources. MNCs entered into these markets, installed their manufacturing plants to provide job opportunities to cheap labour at fair prices as was followed in the Western world (Cohen, 2007, p. n.d.). However, the fairness in business practices was gradually doomed into the fog of competitive edge and cost cutting through exploitation of cheap labour, even if it incorporated child labour. MNCs entered into a race of business profitability and competitive processes that they dug all human right vows beneath the surface of earth and lured for a growing trade of business profits and labour rights (Cohen, 2007, p. n.d.).

Business in an International Perspective

Over the past ten years, substantial number of companies has expanded their business operations on an international scale, and MNCs have made significant role in the conduct of international trade. According to statistics, 1/5 of global GDP and 50% of the global trade flow is controlled by 500 largest MNCs of the world (Harrison, n.d., p. 1). Role of MNCs is critical to global business expansion and exports because they have the ability to create employment, to support and promote progress in various disciplines, to transfer technology and ...