This is an example of globalization because these brands are getting involved in an issue that is outside of their borders. Companies like Adidas are not stationed in Cambodia, but are becoming increasingly involved in the issues. This breaking down of the barriers is an example of globalization
This portion is related to the industry sector. The clothing industry is one of the major industries in the world and the most important industry in Cambodia.
Low wages and an abundant workforce, powered mainly by the country's rural population, have drawn major clothing brand names like GAP, H&M, Nike and Puma to Cambodia. Today, the industry is a $5bn-a-year business with almost 550 factories, mostly owned by Taiwanese, Korean, Chinese, Hong Kong and Singaporean companies.
http://www.thezimbabwean.co/news/zimbabwe/71077/designer-calls-for-revival-in.html This separate current event connects with the importance of the clothing industry. The clothing industry is an important industry in the continent of Africa, a separate region from Cambodia. This goes to show how important the clothing industry is across the globe.
The inhumane conditions in the factories caused the workers to strike, and this caused great damage to the apparel industry. This is an example that shows why factories in the U.S. are more likely to locate in states with right-to-work laws. These states have lower chances that unions will organize and even strike, meaning that productivity will most likely remain at a high level. The striking workers in Cambodia will probably also demand higher wages, which lowers profits for manufacturing companies.
I found it interesting that there were quite a few fires throughout the factories in Cambodia. The government and factory owners don't seem too concerned about it, which makes me wonder if these factories have laws about safety in the work place or not.
It's crazy that it took until now for us to start seeing strikes in developing countries where wages are incredibly low. I wonder what the internet censorship laws are like that prohibited them from discovering what the rest of the world was earning.
Nathan, I found this article to be very interesting and how large this industry is, even in a developing country such as Cambodia. I am surprised to see that in one year this is a 5 billion dollar industry. I also was surprised to find out how many well-known companies outsourced to Cambodia, such as GAP, H&M, Nike and Puma.
Chinese consumers increasingly favor American brands, which have a reputation for safety, youth and international flair. The domestic brands have tended to lag in surveys of initial quality and engineering, although they are starting to close the gap. In long-term reliability, they are far behind and falling even further.
Multinational corporations are steadily clawing market share from Chinese brands in their home market
as a succession of global brands have pushed their way into China
to accept cheaper, spartan models from domestic manufacturers
They want to persuade China’s Commerce Ministry to retain a requirement seldom found in other top manufacturing nations: Foreign automakers may assemble cars in China only through 50-50 joint ventures with domestic partners.
“If there is a loosening of the restrictions on foreign ownership in automotive shares, it will instigate massive changes in the configuration of our country’s automotive industry,”
“The cap has hindered fair, open and transparent competition, which undermines the interests of consumers and the overall competitiveness of the Chinese auto industry,”
“It is our common goal to further develop these and to be successful together in the Chinese automotive market,” Volkswagen said in a statement.
The original goal of the joint venture requirement was to force multinationals to work with big, state-owned automakers with ample access to credit from state-owned banks. The ministry’s hope has been that the state-owned automakers would learn from their partners to build world-class cars that they could then export
The multinationals have continued to provide most of the designs, engineering and marketing. They build essentially the same cars that they sell in the rest of the world
domestic brands had only 29.5 percent of the car market last year
Ford’s joint venture here in western China has 15,000 employees who assembled more than 600,000 vehicles last year, making it Ford’s largest operation outside southeastern Michigan
The second factory is among the most modern anywhere in the world: Steel coils go in one end and finished cars come out the other just eight hours later.
Domestic Chinese automakers have also bought robots for their operations from international suppliers. But they have tended to rely much more on using huge teams of workers for manufacturing, and they have struggled to figure out how to integrate robots efficiently into assembly lines — a task that took decades for multinationals to master
<-- This 50-50 Domestic and Foreign part requirement is interesting in the fact that I have never heard another country implicate a guideline like it. It certainly goes against what is found in the US (IE. The vehicle is either 100 percent foreign or 100 percent domestic...rarely both.
This bit of text here exemplifies the Human Geography them of Globalization, or the diffusion of ideas and innovations to other regions. By allowing international manufacturers like Ford to form joint ventures with its domestic manufacturers, the Chinese state hopes that important ideas like an aspect of a design or Aerodynamics will "rub off". These industry secrets if you will would, in turn make Chinese domestic cars much more valuable and safe.
The fact that Chinese domestic manufacturers are can't use robots as efficiently as their international counterparts is just the classic case of under-skilled labor within the secondary sector.. Because international corporations have been around for years, they have been able to master and teach the techniques of operating a complicated machine like a robotic arm. In turn, they are much more efficient in their production and generate a higher profit. On the other hand, China is relatively new to the light vehicle scene and as consequence it's workers aren't as experienced.
My only question is why have the 50-50 cap in the first place? Is it to protect domestic companies and act as a tariff in a sense? Or is it their to allow the Chinese government to tax the multi-national vehicles?
Australia is ranked second in HDI, yet it is still in industries that most stage three countries would have. Australia still has not opened themselves up to services like the United States and Western European nations.
Experts say an influx of “knowledge jobs’’ — that usually require a tertiary degree — are growing strongly despite a high Australian dollar and competition from cheap imports.
industries such as healthcare, finance and insurance are growing strongly, while manufacturing companies are adapting to changing conditions.
There is a recognition and a willingness to adapt to new and emerging industries such as those providing the ‘knowledge’ jobs so crucial to future growth,” he said.
education facilities
colleges are developing and offering courses tailored to new industries.”
“Importantly, this contraction has been more than offset by strong growth in a number of industries, primarily the construction and service (finance, healthcare and transport) sectors.
Healthcare and social assistance accounted for 60,174 jobs (12.1 per cent of employment in the region), followed by retail trade with 52,523 (10.5 per cent) and wholesale trade 34,879 (7.0 per cent)
manufacturing remains the most important employer in Western Sydney, making up 15.6 per cent of total employment.
Healthcare and social assistance accounted for 60,174 jobs (12.1 per cent of employment in the region), followed by retail trade with 52,523 (10.5 per cent) and wholesale trade 34,879 (7.0 per cent)
Manufacturing makes up 14.5 per cent of the Greater Western Sydney economy.
This relates to the theme of globalization because it shows how more countries are using service related jobs instead of primary and secondary jobs because technology is making those jobs easier for fewer people to complete.
An article about the United States that relates to growing industries after the recession can be seen by clicking the link below. Although this article is more about the rebounding secondary sector jobs, it parallels the growth in new jobs.
This article relates to chapter eleven and twelve because it explains the change a developed country, Australia is going through the process of becoming reliant on tertiary sector jobs instead of jobs in the secondary sector. This article explains how quickly healthcare is growing while other companies in manufacturing have to adjust to not having as much of the population to hire.
First thought...interesting article Cameron. It encouraging to see a country like Australia developing and implementing services in its economy. I wonder how this will effect the prices of the minerals Australia exports to the majority of the world? With more people moving to the service sector there will be less in the mines, so my gut tells me that the world wide prices will go down due to the fact that companies will be able to make a bigger profit selling the same amount of material due to lower labor costs.
I feel like Australia has a lot going for it!
Like you mentioned, it has a high HDI- this is no coincidence. As we know, it has access to important natural resources. It is fairly isolated, which can hurt its economy, but there is less competition for jobs. It is also a highly popular area for tourism. It doesn't get involved in a lot of matters occurring in the northern hemispheres, which keeps it out of costly wars.
It is not surprising to see more jobs in health care being created since we Rubenstein talked briefly on the matter in the text. Due to the fact that the life expectancy is raising day by day, it comes with no doubt that we will continue to see more job growth in this field.
In general, we are currently seeing more growth in the service sector than compared to the industry sector in the United States. This is most likely because of more and more people becoming further educated and aspiring to become white-collar workers as opposed to blue-collar.
It's surprising to see job growth in the mining industry even though some companies continue to outsource b/c of the industry being bulk-reducing and a pattern of continued use of more technology in this field of work.
The reference to the winter weather is an example of nature culture and how nature effects the way of life in the region since it noted how the weather hindered potential improvement in the job market.
Both Nike and Coke are responding internally: Coke uses water-conservation technologies and Nike is using more synthetic material that is less dependent on weather conditions. At Davos and in global capitals, the companies are also lobbying governments to enact environmentally friendly policies.
Coke’s vice president for environment and water resources, listing the problems that he said were also disrupting the company’s supply of sugar cane and sugar beets, as well as citrus for its fruit juices.
global warming as a force that contributes to lower gross domestic products, higher food and commodity costs, broken supply chains and increased financial risk. Their position is at striking odds with the longstanding argument, advanced by the coal industry and others, that policies to curb carbon emissions are more economically harmful than the impact of climate change.
ven the most conservative estimates peg the social benefit of carbon-based fuels as 50 times greater than its supposed social cost.”
n Europe, the Organization for Economic Cooperation and Development, the Paris-based club of 34 industrialized nations, has begun to warn of the steep costs of increased carbon pollution.
Nike, which has more than 700 factories in 49 countries, many in Southeast Asia, is also speaking out because of extreme weather that is disrupting its supply chain. In 2008, floods temporarily shut down four Nike factories in Thailand, and the company remains concerned about rising droughts in regions that produce cotton, which the company uses in its athletic clothes.
Why is the cheaper electricity helping to raise so many people out of poverty? And why in China and Inda?
as high energy costs, declining industrial competitiveness and a recognition that the economy is unlikely to rebound soon caused European policy makers to question the short-term economic trade-offs of climate policy.
“There will be agriculture and economic effects — it’s inescapable.” He added, “I’d be shocked if people supported anything other than a carbon tax — that’s how economists think about it.”
I find it interesting and surprising that high energy costs are causing declining competitiveness between industries because it just doesn't seem to make a lot of sense. It maybe causes different companies to go broke or stop manufacturing different things because of the high costs of producing them.
This part shows how this article is related to industry. Nike has different factories, which is part of industry. Also, it talks about how different factors would cause factories to shut down, such as droughts. Many people would go out of jobs because of this happening for a certain length of time, which we have talked about in the industry and service chapters.
This section talks about globalization and nature-culture. It shows globalization because of the different factories that Nike owns, and even with most in the same place, Southeast Asia, they sell to the entire world. It shows nature-culture with the different factories having to close because of floods.
Just an idea in all, but if this so-called carbon tax is passed wouldn't it raise the price of goods? But then again, I guess companies have to make up the deficient somehow.
It's crazy to think that a company has so much power that even though it is depleting water supplies and causing pollution it is still not shut down. This is probably due to lack of knowledge consumers have and the mass of money that the company has.
Nature Culture: because people are exposing pollution to the air, it in turn is having a negative affect on people. The way they interact with the environment (degrading it).
This restriction of multi-brand retail stores would hinder the advancement of globalization. New products will not make it to other parts of the world if the governments place restrictions on them.
These connections to the largest cities within India will help the country with its transportation of products. This allows products to be sold faster because they reach the consumers in a short amount of time thus allow the company to make the profit they wish to achieve.
This new policy will have its pros and cons. The "manifesto" should help the country's economy to kick start but locking out multi-brand retailers and genetically modified foods may not be the most intelligent choice but creating these railways and producing more food processing and manufacturing companies should be a step in the right direction.
It seems that even the people of India agree that some aspects of the "manifesto" should be reconsidered and updated. Even the Hindus believe that the "manifesto" needs to be reconstructed. http://www.bbc.com/news/world-asia-india-26933587
This article shows how when moving into a new country because of its economic potential could be dangerous if the government not yet completely stable. Though all the site and situation factors make India a prime country to set up shop, an unstable government can negatively turn the tables, making India a risky country to put a foreign owned company in.
It's interesting that there are less people going into construction even as a part time job since most college grads don't get a job right out of school. You would think that instead of working at a McDonalds or something people would do construction jobs where they have more of a chance to turn a profit and actually get a permanent job.
It is quite interesting to see that a large amount of construction workers are over the age of 55. This is going to cause problems within the field with less teens filling in their spots. As we learned in class those people over 55 will soon be added into the dependency ratio and they will no longer be able to work causing even more problems within the construction work force.
This article details how many container shipping industries are in danger of going bankrupt due to some fuel saving attempts and even attempts to drive up prices to increase profit. Due to these attempts, carriers lost $1.1 billion between 2007 and 2011. This could affect how goods are moved, and may drive up prices as more expensive modes of transportation are used. Since boats are the most cost-effective by distance, the problems of money in shipping could increase. I wonder if this will end up being an issue, or if the government or shipping industries will step up to reduced this problem. This could affect where companies place their factories. It is a largely situational issue.
This directly relates to site factors because in Shanghai, the land is limited and expensive due to it being a dense urban region. It is cheaper for businesses to establish factories in rural and suburban areas with proximity to junctions and highways. Also, businesses prefer to build horizontally, therefore needing more land area.
As the cost of manufacturing in China has risen, so have reports of companies pulling their plants out of the country to find cheaper locations.
manufacturing in China has risen, so have reports of companies pulling their plants out of the country to find
Even with manufacturing costs rising in China, Prince Industries has benefited from expanding its operations outside Chicago to include a plant in China
move plants to inner or western China where labor costs are lower
The rising value of the RMB was expected and has made it more costly to ship goods built in China around the world.
This connects to Kelly Gallick's current event on the survival of U.S. manufacturing as businesses compete with low-cost labor in LDCs. This statement portrays that keeping industries in the U.S. and not outsourcing to China would be beneficial. The manufacturing costs would be the same, while the U.S. provides proximity to markets, which reduces transportation costs.
Though rapidly declining, the profit that can be made with outsourcing to other countries with a cheaper labor force can prove to be beneficial to businesses. How much longer until businesses see the shift from profit to loss with outsourcing.
Outsourcing links to the geography theme of globalization, for it increase involvement with transnational industries and corporations. In addition, outsourcing causes businesses to become known in the region where products are being manufactured, initiating a closer-linked globe. Globalization promotes the cooperation with other countries to become successful in the world markets.
This relates to the article we read in class and I remember it saying that the government supports the increase in wages. Its interesting to see your comment on how companies who outsource will react.
This surprises me since it seems that there is such a push to continue to outsource. I wonder what the US will do: will we continue to outsource, or will more domestic jobs be created?
GM has started to recall millions of cars after 31 deaths throughout the past few years, which has resulted in the industry not being as successful as it once was.