Chapter 13 globalization

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Globalization is a process of interconnectedness and liberalization in trade and commerce in the world; flow of information, technology and resources also happens with it. It has its impact, on positives and on some negatives. Growing calls for a fair globalization talks of more inclusion, rights and equality. This essay highlights the role of International Labour Organization (ILO) and its various declarations, especially Declaration on Social Justice for a Fair Globalization for a fairer and sustainable globalization, where demands of each section is met and for a shared prosperous future.

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193 9The 21st Century and the Changing Face of Unions Carlow Osorio/Associated Press Learning Objectives After completing this chapter, you should be able to: • Analyze the impact globalization and transnational corporations have on the power of unions. • Describe the major changes in attitudes toward labor. • Evaluate some of the alternatives open to labor organizations if they are to survive in the 21st century. sea81813_09_c09_193-210.indd 193 12/10/14 3:13 PM Section 9.1 Globalization Introduction When considering the future of unions, one of the most important questions to ask is whether they will survive in the 21st century. We have seen that union membership is not what it once was. Private unions have seen a drop from an all-time high in 1954 of 34.8% to today’s low, which is nearing 6.7% (DeSilver, 2014). Although public unions grew stron- ger in the late 20th century, their numbers are declining as well. Many factors are working against these organizations, and if they are to survive, it will require that they make signifi- cant changes. This chapter will explore some of the most salient reasons for this decline, as well as possible ways that labor organizations might be configured in the future. 9.1 Globalization Globalization refers to the way in which business is no longer confined within a particular country, but rather takes place across boundaries, time zones, cultures, and borders. It describes the expansion of a business outside its home or domestic country to other countries, be it in trade, finance, or investments, such that the business is dependent financially on operations in two or more countries (Greer & Singh, 2000). The global expansion of business has had many effects on labor. This section will explore some of those consequences, includ- ing how globalization makes organizing labor more difficult and the impact of treaties on labor, global unions, and collective bargaining. Globalization and Transnational Corporations One of the primary reasons that unions must change is because the world itself is changing. Perhaps the biggest shift underway is the transition from local domestic business to business conducted by global enterprises. Companies that conduct business in just one country are referred to as domestic corporations. Companies that conduct business in multiple countries are transnational corporations (TNCs). Transnational corporations are usually characterized by the breadth of their reach into other markets, the size of their workforce, and the value of their assets. Consider the Ameri- can corporation Walmart, which is the largest employer in the world. Walmart has 2.2 million workers worldwide and 11,000 stores in 27 countries (Walmart, 2014), with assets of $59.69 billion (Wikinvest, 2014). The “universe of transnationals is large, diverse, and expanding. By the early 1990s there were an estimated 37,000 TNCs in the world with 170,000 foreign affiliates..

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This manual is the result of several years of ACTRAV’s efforts in support of trade unions working to eradicate all forms of child labour. The scourge of child labour remains a challenge today. Even though we have made progress in the recent past, there are still some 168 million children in child labour across the world. This is not acceptable. We have to renew our efforts in this fight against the exploitation of the weakest in society. Trade unions have always been engaged in this fight against child labour. Through successive programs, ACTRAV has provided technical and financial support to these unions. This manual draws on a number of lessons learnt from several years of ACTRAV’s engagement in this area of work. The manual therefore focuses on the added value of trade unions in the fight against child labour. Hence, unlike other guides in the past, it places an emphasis on ways of engagement in the fight against child labour which best suits trade unions. Strategic areas where trade unions have a natural disposition to make a difference to the global effort to fight child labour identified in this manual include, influencing national socio-economic policies through engagement with governments; using organising strategies and collective bargaining as a means of tackling child labour; using the ILO supervisory system to effect change in national laws and practices dealing with child labour; and participation in national and international campaigns against child labour. The manual also provides unions with an up-to-date understanding of what child labour is today and the need for an official trade union policy to tackle it. Another important novelty of this manual is that it presents a wide array of examples of concrete trade union actions to tackle child labour. These examples in the manual are not presented as models for all unions to follow. Rather, they are in the manual firstly to indicate that it is possible for unions to engage in the fight against child labour. Secondly, they are here as examples to inspire other unions to develop their own country-specific actions against child labour. ACTRAV expresses its appreciation to all those who have contributed to the development of this manual. Particular thanks go to Ms Nora Wintour who drafted the manual and to colleagues in ACTRAV and IPEC who provided comments on successive drafts. We are confident that this manual will be a useful tool for trade unions in their engagement in the fight against child labour. Maria Helena Andre Director Bureau for Workers’ Activities (ACTRAV)

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Chapter 20: Globalization and Protectionism in the text Principles of Microeconomics by OpenStax is available under a Creative Commons Attribution 4.0 license. © Feb 25, 2016 OpenStax. http://cnx.org/contents/[email protected] http://creativecommons.org/licenses/by/4.0/ 20 | Globalization and Protectionism Figure 20.1 Flat Screen Competition The market for flat-panel displays in the United States is huge. The manufacturers of flat screens in the United States must compete against manufacturers from around the world. (Credit: modification of work by “Jemimus”/Flickr Creative Commons) What’s the Downside of Protection? Governments are motivated to limit and alter market outcomes for political or social ends. While governments can limit the rise in prices of some products, they cannot control how much people want to buy or how much firms are willing to sell. The laws of demand and supply still hold. Trade policy is an example where regulations can redirect economic forces, but it cannot stop them from manifesting themselves elsewhere. Flat-panel displays, the displays for laptop computers, tablets, and flat screen televisions, are an example of such an enduring principle. In the early 1990s, the vast majority of flat-panel displays used in U.S.- manufactured laptops were imported, primarily from Japan. The small but politically powerful U.S. flat-panel- display industry filed a dumping complaint with the Commerce Department. They argued that Japanese firms were selling displays at “less than fair value,” which made it difficult for U.S. firms to compete. This argument for trade protection is referred to as anti-dumping. Other arguments for protection in this complaint included national security. After a preliminary determination by the Commerce Department that the Japanese firms were dumping, the U.S. International Trade Commission imposed a 63% dumping margin (or tax) on the import of flat-panel displays. Was this a successful exercise of U.S. trade policy? See what you think after reading the chapter. Chapter 20 | Globalization and Protectionism 441 Download for free at http://cnx.org/contents/[email protected] Introduction to Globalism and Protectionism In this chapter, you will learn about: • Protectionism: An Indirect Subsidy from Consumers to Producers • International Trade and Its Effects on Jobs, Wages, and Working Conditions • Arguments in Support of Restricting Imports • How Trade Policy Is Enacted: Globally, Regionally, and Nationally • The Tradeoffs of Trade Policy The world has become more connected on multiple levels, especially economically. In 1970, imports and exports made up 11% of U.S. GDP, while now they make up 32%. However, the United States, due to its size, is less internationally connected than most countries. For example, according to the World Bank, 97% of Botswana’s economic activity is connected to trade. This chapter explores trade policy—the laws and strategies a country uses to regulate interna.

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