International Division Of Labour Case Study
What is international Division of labour? How has it developed and what are its main implications?
The division of labour involves dividing the manufacturing tasks of workers into simpler, repetitive operations that could be performed by workers with varying degrees of skill. Such mass production, which is typically reliant on mechanisation, produces goods in large quantities with relatively low labour costs.
International division of labour is a function of globalisation. There is a reorganisation and movement that sees manufacturing moving away from more advanced countries to those that are developing. In Asia and Africa, for example the low cost labour makes the manufacture and assembly of goods cheaper and hence manufacturing moves …show more content…
Now it is not industrialised countries but high skilled, knowledge intensive, white-collar jobs that are the core and low skilled, labour intensive and standardise operations (predominantly in developing countries) that are the periphery. The relocation of most labour intensive parts of production process to developing states has led to the rise of the new international division of labour)
However, this new international division has been uneven and has not reduced economic inequalities. Global special zones allow foreign investors and their subcontractors to be exempt from regulations and taxes allowing them to be highly profitable whilst within the country, pay remains low and jobs unstable. Wages may be driven down because of international competition and employees in developing countries may be exploited. For TNCs to be involved in the world economy they have to lower their costs and have easier access to markets so developing counties consent to foreign direct …show more content…
In the twenty-first century there has been a significant increase in the number of transnational corporations organizing their divisions of labour on an international scale. This may be smaller scale - sourcing 1 or 2 inputs, or a limited export market for the final good/service or on a massive global scale of production network)
There are various positive implications of the division of labour. MNCs are able to recruit from a larger, global labour force, the cost of labour is driven down by the increasingly competitive labour market, the lower costs should lead to higher profit and income which in turn should prompt rising employment and growth. Also there are more opportunities for employees in new markets in developing countries and the possibility of higher wages for employees.
There are positive effects. Economically, there is a higher total production and there is more of an encouragement towards peaceful associations and trade. Socially and politically it has an impact on productivity and specialisation factors according to efficiency; furthermore, via trade each person may augment or degrade affiance. Also, employment can be indefinitely
The division of labour involves dividing the manufacturing tasks of workers into simpler, repetitive operations that could be performed by workers with varying degrees of skill. Such mass production, which is typically reliant on mechanisation, produces goods in large quantities with relatively low labour costs.
International division of labour is a function of globalisation. There is a reorganisation and movement that sees manufacturing moving away from more advanced countries to those that are developing. In Asia and Africa, for example the low cost labour makes the manufacture and assembly of goods cheaper and hence manufacturing moves …show more content…
Now it is not industrialised countries but high skilled, knowledge intensive, white-collar jobs that are the core and low skilled, labour intensive and standardise operations (predominantly in developing countries) that are the periphery. The relocation of most labour intensive parts of production process to developing states has led to the rise of the new international division of labour)
However, this new international division has been uneven and has not reduced economic inequalities. Global special zones allow foreign investors and their subcontractors to be exempt from regulations and taxes allowing them to be highly profitable whilst within the country, pay remains low and jobs unstable. Wages may be driven down because of international competition and employees in developing countries may be exploited. For TNCs to be involved in the world economy they have to lower their costs and have easier access to markets so developing counties consent to foreign direct …show more content…
In the twenty-first century there has been a significant increase in the number of transnational corporations organizing their divisions of labour on an international scale. This may be smaller scale - sourcing 1 or 2 inputs, or a limited export market for the final good/service or on a massive global scale of production network)
There are various positive implications of the division of labour. MNCs are able to recruit from a larger, global labour force, the cost of labour is driven down by the increasingly competitive labour market, the lower costs should lead to higher profit and income which in turn should prompt rising employment and growth. Also there are more opportunities for employees in new markets in developing countries and the possibility of higher wages for employees.
There are positive effects. Economically, there is a higher total production and there is more of an encouragement towards peaceful associations and trade. Socially and politically it has an impact on productivity and specialisation factors according to efficiency; furthermore, via trade each person may augment or degrade affiance. Also, employment can be indefinitely