Lecture 25th September - intro to globalization

Lecture 25th September - intro to globalization - Lecture...

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Lecture 25 th September Intro to Globalization Global outsourcing/subcontracting Corporations turned to outsourcing with a vengeance in 1990’s. The international movement of capital and moving jobs to countries with lower labor costs. First impacted manufacturing industry, IT jobs, call centre, bathroom supplies etc. Why outsource jobs? To maximize profit, to get shareholders to earn more money. 2 ways to do this – increasing productivity thru investing and improved technology or to exploit workers which is done in two ways – increase labor (longer hours) and cut wages (pay less). This is exploitation. Exploitation and profit are the same thing – when the worker is paid less value than the actual commodity they are making. To find a labor force that is willing to do this to generate more profit. 1993 Mexico was 25% less, China 3% less of American manufacturing wages/textiles. Labor was outsourced because the largest percent of manufacturing costs is spent on labor. 1920’s especially textiles – this industry started in the North and then started moving South because of immigration policies in 1920’s and restricted access to workers so they moved South to utilize rural workers – in the rural South where people are really poor and desperate. Capitalists always moved around in search of less labor costs. Importing and outsourcing are different.
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Lecture 25th September - intro to globalization - Lecture...

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