New Markets, Lower Costs: Essay Sample on The Globalization of Business

Introduction

Most global corporations, from both developed and developing countries, are continually searching for newer markets in other regions for their products. These companies also look for places to produce their products at lesser costs. Labor costs form the primary aspect of cost and are therefore given priority. Developed countries have enacted stringent laws concerning wages, hence the high wages. As for developing countries, they have weaker laws or lack the laws regarding wages completely. These developing countries are said to offer approximately a tenth of the cost compared to those offered in developed countries (Ronconi, 2019).

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The point raised in the statement is correct that in developing countries, the workers are paid lower wages, and yet they are manufacturing the export products. However, these low wages still help these workers to earn some money, which is vital for their livelihood. If this scenario is viewed from the ethical point, mainly focusing on the aspect of social responsibility, the wages being offered to the workers are unfair because it represents a misuse of the situation of reduced labor or workers. Therefore, from a sincere point of view, that approach in business involving paying out low wages to workers is unfair. Workers are supposed to earn a fair share from their skilled labor in producing export quality.

Social Responsibility and Accountability

In my opinion, I am against the statement which supports the idea that the market will punish corporations who do not act responsibly. The idea of social responsibility and accountability is dependent on the type of product being produced by the company. Also, the aspect of elasticity and availability of substitute products for the consumers is critical. Few reports have revealed the 'real' contributions by corporations to social causes. To monitor the contributions of the corporations, proper laws should be enacted by the government. The laws should include advocating for the allocation of funds by these corporations in promoting social welfare. For instance, India sets approximately 2.5 percent of the generated revenues to cater for corporate social responsibility purposes (Crane, Matten, & Spence, 2019). This ensures that the corporations ethically give back to society. The percentage should, however, not be exceedingly high such that it would kill business incentives. An environment-management fund can also be initiated and utilized as proposed by top environmentalists.

Advertising to Children

I feel that advertising to children is not the right approach because they are immature and cannot make a reasonable and logical decision. In my opinion, it is not advisable to make advertisement to children as it unnecessarily influences them towards the company offerings. Some of the advertisements can be misleading to the children hence interfering with moral upbringing. The 'advertising to children' approach is not the appropriate approach to adopt in meeting the needs and wants of the children. Different approaches can be adopted to execute this purpose, especially ones that involve the consent of the parent or guardian.

References

Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings and cases in a global context. Routledge. Retrieved from https://books.google.com/books?hl=en&lr=&id=tEmMDwAAQBAJ

Ronconi, L. (2019). Enforcement of labor regulations in developing countries. IZA World of Labor. Retrieved from https://wol.iza.org/articles/enforcement-of-labor-regulations-in-developing-countries/lang/de