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29 Cards in this Set
- Front
- Back
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Internationalization vs. globalization |
intensifying of cross-national activity vs. creation of an entirely new scale of economic activity |
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Global value chain and global production networks led to... |
integration of trade and disintegration of production |
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comparative advantage of developing countries |
labour-intensive production resources |
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How do MNCs from North put pressure on producers in developing countries? |
- deadlines - quantities and qualities - standards - speed of production |
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Governance should comprise... |
- facilitation of market growth - regulation of production standards - compensate failures |
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Uruguay Round and labour standards... |
- attempt to build global regulatory framework - attempt to move towards deep integration - initiated because of production shift to developing countries - MNCs started outsourcing - local capacity to regulate MNCs in developing countries limited - issues of health / safety / environment |
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Globalized economy challenges... |
national regulatory mechanism |
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Bangladesh exports... |
90% garments industry result of MFN quota hopping
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Regulation is an issue of... |
capacity and political will |
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Alternative Mechanisms of Governance (other than WTO) |
1. National Governance = political reform with international support 2. Multilateral system 3. Bilateral system 4. Private Governance |
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Labour Standards and Trade. Free trade vs. fair trade arguments |
Free trade: "labour standards deprive countries of their comparative advantage, which is cheap labour" "high standards do not reflect stage of economic development" "higher standards would lead to a larger informal economy"
Fair trade: "social dumping" "unethical" "race to the bottom" "we do not have to repeat history!" "global value chain logic" |
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ILO |
International Labour Organization under GATT voluntary standards |
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NAAIC |
North American Agreement on Labour Cooperation - a side agreement to NAFTA - first major trade agreement to incorporate labour standards - no sanctions |
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Social Clause in the WTO |
- core labour standards * Freedom of association and collective bargaining (Conventions 87 and (98);* Abolition of forced labour (Convention 29 and 105); * Prevention of discrimination in employment and equal pay for work of equal value (Conventions 111 and 100); * Minimum age for the employment of children (Convention 138) |
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Who pushed for the social clause? Who opposed? |
Singapore Ministerial 1996: Brazil and India opposed, some developing countries supported it, developed countries were pro Seattle Debate 1999: created a group to discuss the issue, big NGO campaign Clinton: "pro-labour standards AND SANCTIONS should be part of the WTO agreements" --> this comment led the Seattle Ministerial to collapse |
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Doha Round |
US-democrats push for labour standards Republicans reluctant
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N-S divide on labour standards: Who is pro, who is con? |
Pro: - developed countres - intl. trade unions - NGOs - national trade unions - some retailers from North
Con: - developing countries - some NGOs - exporters from dev. countries - most MNCs - most supermarkets and big retailers from NORTH |
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Would the failure to integrate labour standards into WTO constitute a win or failure for developing countries? |
different stances. most governments of dev.countries want to maintain their policy space. for workers and development... a fail |
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Positive vs. negative approach in enforcement of labour standards |
positive: positive incentives, link increased market access to better labour rights negative: impose sanctions |
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Enforcability low or high in... EU Trade Agreements US free trade bilateral agreements NAFTA |
low high medium |
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Labour Standards in Trade Preference Programmes: Possible Sanctions |
GSPs could be removed if standards are violated AGOA status could be lost |
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Standards in bilateral EU-Agreements |
light consultation sanction exclude trade sanctions |
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GSP-EU Apprach is similar to... |
bilateral US approach |
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GSP+ |
improves market access in exchange for human rights (positive enforcement)
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EBA |
everything but arms Garment industry is included here but Bangladesh was not sanctioned because its entire sector would have collapsed "too big to sanction" |
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Alternative Approach: Private Governance of Labour Standards |
CSR idea of self policing ethical trade initiatives Implementation through CSR department: - audits - self-reporting - conflicts of interest! - also independent reporting through NGOs
effectiveness of private governance is questionable
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Sub-contractors and visibility... |
question of responsibility represents Northern interests (such as fight against child labour) but not necessarily preferences of developing countries (where child labour may be culturally acceptable) |
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economic upgrading vs. social upgrading |
Firm capability building theory argues that higher standards are better for business... however, economic upgrading does not necessarily lead to investments in social / labour standard improvements, and improvements in labour standards does not automatically lead to higher profits |
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Migration of Globalization |
- governance and coordination of international labour migration flows is key to understand what we see in factories around the world. |
