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Danyal Ahmed 3/02/2014 International Business International Business Exam Essays 1.

Discuss why the concept of social dumping that is allegedly taking place in the current international trade practices in countries like China should be considered unethical and is a concern to the United States. To what extent do you agree social dumping is deliberately done or is a natural phenomenon of developing countries with low standard of living?

As the world population increases, and as the general standard of living slowly increases along with it, there is a growing demand from the general population for much more goods. To meet these demands business, now more than in any other points of history are competing to ensure that they capitalize on this economic opportunity. As competition increases in nearly all industries, a companys ability to provide a cheaper product than its competitors, has become a key factor in the future demise or sustainability of the corporation. In the twenty first century many corporations and domestic companies, in order to have the greatest net income possible, have started to realize the comparatively extremely high cost of producing goods and providing services in developed nations. As noted in her research Dr. Wesley Pruden points out, with minimum wage regulations, safety hazard regulations, and less human capital present within developed nations corporations have strategically shifted to predominantly to India and China. The issues now becomes, are corporations, and other entities, deliberately participating in this social dumping, or is this a natural phenomenon that occurs when there is a low standard of living.

In this paper, I will definitively explain that social dumping is deliberately is institionalized by governmental regulations, specifically through public policy, and corporations have an active role in ensuring that governments in poorer nations keep work and pay standards low on purpose.

Danyal Ahmed 3/02/2014 International Business Therefore, because of these factors the social dumping that takes place is not solely a natural phenomenon. Foremost if developing nations naturally wanted there to be universal standards they would join developed nations, however, because they understand the advantage they have if there is no regulations developing nations, purposely decided not to join universal rights efforts. Magdalena Bernaciak stated, The US, most of the EU member states, and Japan, together with NGOs and trade unions from high-standard countries, put forward both normative and socioeconomic arguments in support of the social clause. Bernaciak goes on to stay In contrast, the majority of developing countries and their labor movements, as well as mainstream trade economists, opposed the clause (Bernaciak). Therefore, because developing nations and their governments understand the benefit from social dumping they will decline worker rights. This is proof that developing nations will change their economic agenda favoring economic growth at the expense of worker rights which is deliberate. From the perspective of public policy it is proven that developing nations change their public policy to suit the initiative of job creation. Another more explicit proof of why this is not a random or natural event is based on the corporations themselves. Corporations will deliberately lobby with governments to keep workers hazards right. Jonathan Smith in his research paper cited, Nike as an example in interviews released by the associated press admitted that children were kicked by supervisors (Smith). They downplayed this by spending millions to cover local and international coverage, thus suppressing any worker rights groups. Due to the actions by the developing nations governments, as well as the lobbyist initiatives of corporations it is clear that this is not just a natural phenomenon but is a skillful transition by specific countries and corporations.

Danyal Ahmed 3/02/2014 International Business Work Cited

Bernaciak, Magdalena. "Social Dumping: Political Catchphrase or Threat to Labour Standards." European Trade Union Institue. N.p., 2012. Web. 2 Mar. 2014.

Pruden, Wesley. "PRUDEN: Backlash in the social Dump." Washington Times. The Washington Times, 02 Dec. 2013. Web. 02 Mar. 2014 Smith, Jonathan. "Nike Workers 'kicked, Slapped and Verbally Abused' at Factories Making Converse." Mail Online. Associated Newspapers, 13 July 2011. Web. 27 Feb. 2014.