Summarize the view of American critics of global firms that import products purc

Question

Summarize the view of American critics of global firms that import products purchased from developing country factories that have bad working conditions and pay very low wages.   Also, summarize Dr. Krugman’s rebuttals. Put yourself in the shoes of the local owner/manager of one of those factories in Indonesia, Bangladesh, etc. How would you address American critics of your practices? Put yourself in the shoes of a poor farmer who recently moved to the city to work in one of these factories. What would your view on the issue of wages and conditions be?

Explanation / Answer

Working conditions of several developing countries are continuously being criticizedpgrade by the competitive firms as they reduce price differences among several goods. Most of the cheap products that are available in the US markets are manufactured at developing countries. Many US firms feel the heat of price war as cheap imports make a dent on their business. Moreover, wages of US workers goes down as the jobs are exported to other developing countries.

However, many economists aregue that exporting jobs to other countries make wage earners to upgrade themselves technically to sustain in the market. Therefore, loss of jobs lead to more specialized jobs in the market which are naturally well paid. But at present many of them agree that there are negative trends felt in the market as more imports lead to job losses among less educated and skilled. Krugman argues that if it is seen that more job losses are due to export of jobs to cheap manuacturing sweat shops there is no second arguement would be found among average US citizen.

Election of Donald Trump as the president credited to these labor and wage loss allegations. Even though Americans think that their jobs were stolen by the laborer of developing world, the scenario is different at the other side. Most of the sweatshop workers there are coming from poor rural areas and jobs at these factories are boon to them. They earn in terms of dollars rather than in their local currency. This one makes difference as they save more money for theri future and immediately it ables to scale up standard of living.

Certnly labor conditions should be improved no doubt about it. However, labor conditions and its definitions may differe country to country. Hence, just by comparing western standards with poor developing country's conditions may not give objecive view. Above all, there should be a consensus for keeping minimum working conditions in those low paid factories in the best interest of all.

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