2 Environmental dynamism where there is social instability the costs of

2 environmental dynamism where there is social

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2) Environmental dynamism - where there is social instability, the costs of transacting increases to such a point that any savings in labour costs are outweighed. (E.g. social flux may render contracts unenforceable - through force majeure etc.). 3) Supplier opportunism - local suppliers may charge above market price for exploiting their local knowledge. Harvey Concerned about the power of merchant capitalists, particularly Walmart, to determine prices in order to keep prices competitive. Lower prices = higher degree to which producers' companies will exploit their workforce Highly skilled labour Outsourcing is increasingly being targeted at high-skilled workers. Slicing production with corporate strategies allows the core knowledge to be trimmed down, meaning that there is less of a risk of IP theft - i.e. labour is able to be outsourced beyond low- Labour as involuntary creditors Foreign SCs are frequently used to profit from dangerous working practices as well as exploitative practices - MNCs are able to export risk. This essentially renders the labour force of the SCs involuntary creditors. E.g. Thor Chemicals Thor Chemicals Took advantage of SA's apartheid and disregard for the well-being of its black citizen. This is, naturally, an old example. Manufactured mercury-based chemicals in Margate. Thor's business was closed down following investigations by the Health and Safety Executive, prompted by high levels of mercury in the blood and urine of Thor's factory workers. As a result, Thor relocated to Cato Ridge, SA, in 1986, where it continued the same health and safety practices which had been condemned in England. Furthermore, to cut back on the price of keeping mercury levels at safe levels in its place of operation, it fired workers once they had become contaminated. They could do this with impunity because of the great financial needs of employees who had no employment rights and because the regime, with apartheid, did not care: "Thor recruited individuals who queued at the factory gate for work each day, allowed them to work until their mercury levels reached the limit and then replaced them with new recruits." (Richard Meeran, Leigh Day) 1992 - 3 workers died from mercury poisoning. An inquiry into the SA'n workers of Thor who were suffering mercury poisoning led to a successful criminal prosecution against Thor in the local magistrate's courts for manslaughter and breaches of health and safety regulations. Compensation claims were then commenced against the parent company (Thor Chemical Holdings Ltd)
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Forum non conveniens A rule that allows a court, in equity, to decline jurisdiction over a case when it believes that the matter would be better resolved in another forum. Usually this is invoked when most of the parties and witnesses to a case are in another location, making it more convenient for the trial to be held there, rather than where the case was filed.
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