Unformatted text preview: Journal Entry: Jack Welch’s Barge The Idea behind Jack Welch’s Barge was that when corporations are working in international trade areas, the corporations have to worry less about the laws of the countries they conduct their business in. In this ideal environment for a corporation, the corporations do not have to abide by any law which may raise their production costs. This would be economically ideal and would lower costs for the corporations by a large measure. They would be able to take advantage of low taxes, subsidies and a surplus of cheap labor. This is the idea that summarizes globalism. The Ideas behind Jack Welch’s barge creates problems for the countries that are affected by it. Because of cheaper labor, many countries that have minimum wages experience problems with unemployment. There will always be a surplus of cheaper labor because there are so many people around the world that are willing to work for such a lower wage in order to survive. Recently many jobs have been lost to workers overseas because of the lower such a lower wage in order to survive....
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This note was uploaded on 07/21/2010 for the course ECO 001 taught by Professor Melkonian during the Spring '10 term at Hofstra University.
- Spring '10