International Labour Standards and Product Differentiation (original) (raw)

Foreign Direct Investment in Emerging Economies

2005

1 Economists may argue that as long as the contract is entered voluntary, both partners would be better off. Notably, local wages reflect outside earning opportunities, which are typically low in those countries where so-called sweatshops are located. However, this assumes ex ante full information and the absence of switching costs. Both conditions are unlikely to be fulfilled in labor markets, especially for migrant workers in developing countries.

Foreign Direct Investment and Productivity Growth

This paper analyses several theoretical perspectives on the relationship between foreign direct investment (FDI) flows and 'productivity growth', interpreted as growth in total factor productivity (TFP). We begin with general equilibrium models. An open economy version of Solow's famous (1956) growth model is developed, where North-to-South FDI flows both equalize the return to capital across countries and transfer technical knowledge internationally. Two recent models of general equilibrium with imperfect competition are also discussed: one allows for specialisation in intermediates production à la , and the other contains endogenous R&D decisions. Three partial equilibrium models are then presented to provide 'strategic' (game theoretic) analyses of (a) how spillovers affect an MNE's choice between FDI and exporting; (b) trained worker mobility as a specific mechanism for spillovers; and (c) the relationship between FDI flows and R&D performance. Before evaluating the state of research on the FDI/ productivity relationship (in the Conclusion), the penultimate section considers whether the form of FDI ('greenfield investment' versus cross-border mergers and acquisitions) undertaken matters for its relationship with TFP growth in two game-theoretic models (first, with endogenous R&D; and, second, when firms differ in their technologies). JEL classification: F21; F23; O31; O40.

TIGHTENING BELTS: TWO REGIONAL CASE STUDIES ON CORPORATE SOCIAL RESPONSIBILITY

Both case studies show how proper implementation and execution of CSR requires awareness and knowledge of the region involved and should never be a matter of merely ticking the boxes. The severe infringements we found in both case studies show as much: due diligence needs to be tightened up., 2019

The two studies brought together in this volume not only look like they are miles apart, in fact they are. The first study investigates the construction of the M4 motorway in Pakistan, while the second study deals with the presence of North Korean forced labour in the supply chains of Chinese factories and international textile brands. One common strand that links these two different studies is that of the notion of Corporate Social Responsibility (CSR). These studies try to determine to what extent companies and financial institutions take responsibility in order to ensure compliance with internationally agreed standards in the value chain. Another strand the two pillars of this report have in common is the presence of the Netherlands: the Dutch state as a stakeholder participating financially in the first project, while the second project involves major Dutch companies whose supply chains run very high risks of containing North Korean forced labour. The third common strand is the introduction of new empirical facts into the discourse, through regional interviews in the first project and by way of new ways of mapping and understanding supply chains in the second. Finally, the last common strand is the role of China in both projects. Both case studies show how proper implementation and execution of CSR requires awareness and knowledge of the region involved and should never be a matter of merely ticking the boxes. The severe infringements we found in both case studies show as much: due diligence needs to be tightened up.

Gaining legitimacy through hiring local workforce at a premium: The case of MNEs in the United Arab Emirates

This study examines the process and outcomes of cultivating external legitimacy through the employment of host country nationals by multinational enterprises’ (MNEs) affiliates in the United Arab Emirates, building on the literatures of both institutional theory and legitimacy. Analysis of data obtained from 48 managers of MNE’s affiliates located in the UAE shows that in sectors where the employment of host country nationals is almost taken for granted, MNEs are driven by a sense of appropriateness and social legitimacy. In contrast, in sectors where the employment level of UAE nationals is low, those MNEs engaging in localization are driven by the logic of economic efficiency and tend to employ locals in order to extract rent from the government. The authors discuss the results and their managerial and policy implications.

The IUF/COLSIBA-CHIQUITA framework agreement : a case study

2004

Explores the campaign leading to the signing in 2001 of an international framework agreement (IFA) between the global banana enterprise Chiquita and the Latin American Coordination of Banana Workers Unions (COLSIBA). Shows how the banana workers unions employed innovative tactics of regional coordination and alliances with solidarity groups in the major consumer markets to achieve the agreement. Evaluates the implementation of the agreement and draws lessons for the potential of future IFAs.

Corporate Codes of Conduct & Labour Standards in Global Sourcing: Incomes Data Services and Cardiff Business School - IDS Documents Series, 1998

1998

Ethics and social accountability have acquired a growing and immediate significance for many managers in recent years. This has often been the result of unfavourable media exposure of breaches of generally accepted employment standards in both domestic and foreign operations and the response to this of increasingly sensitised consumers. High profile brands have been ensnared in public controversy and obliged to take emergency remedial action in the glare of publicity. In the UK, shareholders meetings have offered telling opportunities for non-governmental organisations to air their concerns about companies' ethical conduct. The underlying forces which have shaped this new agenda are unlikely to go away, and could grow stronger: a new recession in the industrialised world, worsening social conditions in Asia following the 'Asian crisis', and new sourcing opportunities in Eastern Europe and Turkey could all fan fears and raise concern about deteriorating standards - fears ...

Global Production Systems and Decent Work

2000

The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval.