Monday, March 4, 2013

China


Made in China:

After watching the movies, I thought, wow, I am so fortunate. I could not imagine living that life style. How can they enjoy life when they do the same task over and over without even being able to talk? I also never realized that the workers live at the factories. It’s sad to think that people’s lives are dictated by the supply and demand chain of business. I loved how the documentarians showed how neither side knows where their products go or where they come from. It’s like they are just there, there to be sold and to be bought without any conscious of why.


Supply Chaining:

As a business model, Wal-Mart is quite impressive. I never knew how they actually operated and worked, nor did I consider that technology was their strong niche. It is amazing how they are able to have so many suppliers and so many stores around the world. To think that if it were its own economy, that it would be China eighth largest trading power is ridiculous. This only demonstrates their success, but also their tremendous power. The problem with Wal-Mart is that its cheap prices do not match their social irresponsibility. They do not treat their employees well and their suppliers are at their mercy. The problem with Wal-Mart is that it is too convenient just like the rest of the big box stores that no one is willing to change the current status quo. We want the cheap prices, but we also want employees around the world to be treated right. Is there a point where you can’t cut costs anymore or weaken employer’s rights? It’s hard to believe that Wal-Mart doesn’t have an effect on off shoring of merchandise. I understand that it’s the suppliers’ decision to go to other countries, but they must feel the pressure (from Wal-Mart mostly) to reduce costs and pay employees less so that they can be competitive.

The Price of Bargaining:

Clearly, any changes China makes to its labor laws and factories will have repercussions everywhere. It’s almost like the US and China has relied on each other too much. China has grown economically and our debt has increased.  As a side not, this article does bring up how all the U.S. does is consume. I think over the next decades, people will have to learn to buy and less and be satisfied with less. It’s not okay for a large population to be living in factories with those conditions and another country to be reaping the benefits at a low cost. But, if China decides to enforce stricter labor laws, then those kinds of jobs will just go to another third world country unless consumers decide they don’t want a bargain. The author is right in that the world especially the U.S. has been enjoying a “free ride on pollution, social strife, violence and poverty.”

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