Global Commodity Chains and Labor Rights

Create a 6 pages page paper that discusses no sweat global commodity chains and labor rights. According to the recent evident, almost 25 percent of total population of the developing countries are engaged in the paid labor live in several households (Seidman, 2007). These people generally survive on equivalent to 1 US dollar per day, per person. Day-by-day, the estimation of the poor working population is increasing significantly. This essay will take a close look at various debates global commodity chains and labor rights. Discussion Labor standard is the estimated, computed and several values, such as operations per hour, assembly time, and output per unit implemented in the evaluating or forecasting labor performance. The relationship between the system of labor standard and globalized production is effectively understood within the global commodity chain concept. The global commodity chain is referred to the way in which manufacturing, sales and distribution of goods is controlled and organized across the national borders. The labor intensive manufacturing of several consumer goods is generally characterized by the particular buyer-driven commodity chains. In these commodity chains the brand-name corporations and large retailers develop a decentralize systems of manufacturing and distribution of such goods. However, the market power significantly differs among the various players across the chain. The real production is generally subcontracted out to several small organizations that generally usually face intense market competitive conditions. Therefore, the subcontractors cannot comfortably raise the output price without risking business loss. On the other hand, brand name multinationals and retailers enjoy some significant market power degree that they can adopt to keep low prices for the products they buy or earn rents through the monopolistic brand identity development. The large retailers and brand-name manufacturers could implement their market power to improve labor standards at the production level by compensating the subcontractors to increase the cost. There are several limitations of the global labor standards. In spite of the implementation strategy, the limitations of several schemes along with the aspects to promote global labor standards can be recognized explicitly. Only a subset of the workforce of the world could receive any benefit if the standards were aimed to the workers who manufacture goods for export. Labors generally produce non traded services and goods cannot directly affected by several interventions such as a social cause or a standardize code of conduct. In addition to this, adoption of the expansionary macroeconomic policy can referred to be an effective strategy to improve the well being of the labors. It will help to secure the egalitarian outcome comparing to the targeted labor standards’ enforcement. Labor standards are not the appropriate policies for the well being of the workers during the period of low global economic growth rate. The concept of global labor standard is irrelevant within the context of global economic downturn and global business expansion of several firms. The government of the developing countries needs to be cautioned before developing an expansionary macroeconomic policy. It is true that, macroeconomic policies can effectively contribute to the fair improvements in the work condition.

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