Answer To: FIN207 International Business Finance and Economics of Globalisation Assessment 2: Written...
Arunavo answered on May 09 2021
FIN207
INTERNATIONAL BUSINESS FINANCE AND ECONOMICS OF GLOBALISATION
ASSESSMENT 2
Table of Contents
Answer 1 3
A) 3
B) 3
C) 4
Answer 2 4
Answer 3 6
a) 6
b) 7
References 9
Answer 1
A)
The environmental laws of a country can be described as the scarcity of the environmental resources because they affect the factor grant of that country and hence, its position in the international partition of the labour. As discussed by Ahmed and Najmi (2018) that there is certain stringent measures imposed over the market access restrictions, which results into the limitation in the competitiveness. This is very much persistent in the developing countries because of the inadequate infrastructure and the monitoring facilities, limited choice of technology, and also towards the limited access towards the environment friendly raw materials for production, non availability of complete information and many more. Similarly, the developing countries will end up in raising the standards of the workers, which leads to losing the comparative advantage, leading to the decline in the export performance, and also leading to the decreased per capita income. Hence, the labour standards provided in the trade agreements level the standard of the labour practice and also helps in meeting up the acceptable level of the labour condition in order to eliminate the unfair economic advantage. Since, there is a relationship between the trade agreements and the standard of the labours in developing countries, it is closely linked according to the changes taking place in the global marketplace, and also in the labour market, which help in their increased shared in the labour demand of developed countries.
B)
In most of the developing and under developed countries with lower environmental standards for work, there are many issues related to child labour. As discussed by Mehta et al. (2020) child labours are vulnerable to abuse because of the cycle of poverty they are trapped into. In the most extreme cases the children are even forced to work under the threat of violence of death. The child labour is majorly seen in the countries with lower level of environment for work, where they are hugely discriminated. Because of the lower cost of labour, the child labour is used majorly in manufacturing units, agricultural sector, and many more other sectors. Hence, the restrictions imposed on the import of the goods in the form of trade barriers will help in lowering the cost of moving goods from one country to other country. This will lead to increase in incomes and wealth for all in the country, and it will also increase the per capita income. However, there is still discrepancy lies that this benefit will reach to the child or not, and also, there is another factor that the trade barriers will sometime bring negative effects on the workers, economies and the environment, especially in the poor countries.
C)
Multinational companies always look forward to the less developed countries for the requirements of the manufacturing needs. As discussed by Ferronato and Torretta (2019) that the corporate social responsibility programs are designed to address the poor working condition of the developing countries. In the developing there is a huge problem of unemployment, poor working conditions, gaps in wages, discrimination and other concerns related to the poor environment condition. Therefore, in order to address the issues of lower labour and environmental issues, it is important to establish the collaboration with the local competition. Supply chain management can be competitive advantage is the local collaboration is made with the local company. The next step is to build the local capacity, which will help in improving the working condition of the people who are associated with the manufacturing company. The third step is to measure the work environment performance by identifying the root cause of the problem. The consideration should be done on the lost time injuries, and psychological, such as stress, aspects of the working conditions must be considered. The fourth step is to gather more feedback from workers, which will help in improving the wage condition and the working condition of the employees. Hence, these steps will help in improving the lower labour and environmental standards in the developing countries.
Answer 2
For any company the two major factors that matters the most is labour cost and the productivity of the company. As discussed by Alaghbari et al. (2019) that the productivity and cost are the set of economic data that measures the future inflationary trends with two indicators....