Moving Factories To Developing Countries Essay

2714 words - 11 pages

In recent years, considering the low cost of developing courtiers, a large quantity of companies in developed countries move factories to these nations for a larger-scale production. When factories are founded in developing countries, these firms take advantage of the cheap labor、low-priced land and abundant natural resources to reduce the cost greatly, thereby, they can chase a higher profit. Besides, this kind of plant relocation brings low-cost countries much needed jobs and assists them developing manufacture. However, the working conditions it provides and wages it pays to workers are not very satisfactory. The phenomenon that employees suffer a bad working condition but ...view middle of the document...

This report aims to make research about the happening of plant relocation and analyze the influences of various aspects.
1.The background information
The phenomenon that moving factories to developing nations has been in existence for a long time, in earlier times it may be caused by the greed of capitalists and cowardice of poor countries, then it became a more fair deal in the era of progress. A few years ago, the global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems(Anup, 2013). In the economic recovery, countries tried various methods and making more efforts to plant relocation is one of these methods.

The table above demonstrates that from 1980 to 2008, the percentage change of life expectancy in low-income countries rises 16.3%, higher than world average percentage change —9.5%,the second is the percentage change in middle-income countries,and the percentage change in high-income countries grows only 9.6%. GDP is different, in 1980, the GDP in low-income countries such as Bangladesh、China、India、Indonesia、Nepal are very low, twenty years later, the average percentage change in low-income countries is 81% lower than world average percentage. While China is a special case, the GDP in China was only $246 in 1980 but in 2008 it has climbed to $6195, rising 2418%( Figure1). It is known by a majority of people that human living standard has been improving with the development of society, what cannot be denied is that the plant relocation from high-income countries to low-cost countries made contribution to these improvements as well. Developing nations make full use of their resources to cooperate with foreign firms, making the economic grow and rising GDP gradually.

Most countries in this list are developed countries and some are high-income cities. When compared to overall HDI, a few countries such as US、France have a certain drop. Income Gini Coefficient has rare relationship with the topic so there is no analysis. While Gender Inequality is a notable problem, especially when a country appears unbalanced sex ratio, this may bring great troubles to job assignments. A country that is made up of the vast majority of males can be hardly recruit enough employees for textile and a nation that female is many more than man may have difficulties to run electronic information industry or coal industry well. Facing this situation, some countries have no choice but to move firms overseas to use the adequate and inexpensive labor(Figure2).

Nevertheless, countries that have no worry about gender inequality or problems appearing in developed nations face challenges as well. From time to time, they possess abundant resources but do not clear about how to make them...

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