International Economics: IB Economics
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International Economics: IB Economics
A collection of articles relating to the 'international' elements of Economics and relating to IB, Pre-U and A-Level Economics.
Curated by Graham Watson
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Mars, Nestlé and Hershey to face child slavery lawsuit in US | Global development | The Guardian

Mars, Nestlé and Hershey to face child slavery lawsuit in US | Global development | The Guardian | International Economics: IB Economics | Scoop.it
Chocolate companies are among the defendants named in a lawsuit brought by former child workers in Ivory Coast
Graham Watson's insight:

Interesting story emanating from the US - with a number of global confectionary companies being taken to court over allegations about the use of child labour in Ivory Coast. 

 

Irrespective of the outcome, such a case does little for the companies' brand image. 

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Cambodia's bicycle firms face bumps in the road

Cambodia's bicycle firms face bumps in the road | International Economics: IB Economics | Scoop.it
The Asian nation has built up a bike building industry, but human rights concerns could put the brakes on growth.
Graham Watson's insight:

This BBC article looks at how human rights intersects with economic issues. Cambodia has started to develop a successful bike building industry; however, increasing levels of concern about the authoritarian nature of the government mean that it might struggle to continue to both attract foreign investment, as a result of the 'brand' being tainted.

 

It highlights the importance of ethical concerns in determining trade patterns and trade relationships, and, from a Cambodian perspective it also highlights how institutions are important in fostering development.  

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Tesco, Mothercare and M&S use factory paying workers 35p an hour | Business | The Guardian

Tesco, Mothercare and M&S use factory paying workers 35p an hour | Business | The Guardian | International Economics: IB Economics | Scoop.it
Bangladeshi firm that made charity Spice Girls T-shirts also works with major UK retailers
Graham Watson's insight:

And here are those UK retailers using factories paying 35p per hour...

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Google says it will no longer use 'Double Irish, Dutch sandwich' tax loophole | Technology | The Guardian

Google says it will no longer use 'Double Irish, Dutch sandwich' tax loophole | Technology | The Guardian | International Economics: IB Economics | Scoop.it
Technique allowed the tech giant to delay paying US taxes on international earnings for years, and pay a lower tax rate overseas
Graham Watson's insight:

Tax avoidance - a favourite issue of mine. 

 

Legal, yes. Ethical, no. Are we meant to be grateful for Google ending this practice, and how does it affect the way in which the ethics of the company are perceived? 

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The Guardian view on Bangladesh: when charity goes wrong | Editorial | Opinion | The Guardian

The Guardian view on Bangladesh: when charity goes wrong | Editorial | Opinion | The Guardian | International Economics: IB Economics | Scoop.it
Editorial: Globalised business networks make well-meaning shoppers complicit in the exploitation of workers they are trying to help
Graham Watson's insight:

And the Guardian editorial on the issue...

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Why are wages so low for garment workers in Bangladesh? | Business | The Guardian

Why are wages so low for garment workers in Bangladesh? | Business | The Guardian | International Economics: IB Economics | Scoop.it
Country offers cheap labour and manufacturing expertise – with often limited oversight
Graham Watson's insight:

G-Max, again: this Guardian piece looks at why wages in Bangladesh are so low, and whilst this is seemingly shocking, the underlying economics of this is more complicated.

 

In the first instance, Bangladesh is one of the most populous nations in the world, and it's labour force is low-skilled. Secondly, workers aren't coerced to work in these garment factories in most instances - it's a choice, and it represents a choice they've taken over all other available options. Thirdly, the cost of living in Bangladesh is remarkably low.

 

So whilst we'd want universal education and better working conditions in an ideal world, the reality is that this isn't going to happen.

 

However, if you do care about these issues, then you, as a consumer have the choice not to buy these items of clothing.  

Katy Pineda's curator insight, January 24, 2019 2:30 PM
Individuals in Bangladesh who are making the Spice Girls and Comic Relief shirts are being paid less than the local minimum wage. Bangladesh is such a popular area to operate because the individuals who are making the products are very skilled in clothing manufacturing and they offer cheap labor.
Unfortunately because they are getting paid so little, many workers feel the need to work overtime just to make ends meet. There are fire regulations and laws set in place but since there are so few inspectors, many inspections are not completed. The workers are aware of many issues but feel scared to report them due to retaliation.