Question

Topic: THE GLOBAL DIVISION OF LABOUR

Tutorial questions:

1. What are the role of TNC’s/MNC’s in the global division of labour?

2. Since labour is globally connected, does national protectionism kill jobs?

Class Debate:

1. Is the global division of labour nothing more than modern slavery?

Answer 1

TNC's/MNC's stands for Transnational corporations and multinational corporations. Such companies have their existence in more than one countries because often in other countries the cost of labour and production is cheaper as compared to its cost in the parent country.

Ans 1. The role of TNC's/MNC's is vital in spreading the business across the countries by dividing the labour on the basis of their skills, competencies, knowledge and experience. When it comes to division of labour, it refers to allocating the specialised tasks to the workforce so that it can be performed in the most efficient manner. Some classical theorists like F.W Taylor has also given the scientific theory in which the focus was to get the work done systematically and in the most scientific way. Globally dividing the labour has the following advantages:-

1) More jobs opportunities- Through multinational compaines, it helped people in getting jobs and have created more opportunities to excel.

2) Helps in utilising resources- Every country has its own natural, human and technical resources. The role of TNC'S/MNC's is very essential is utilising all such resources by work interdependently.

3) Economic growth of the countries- It helps in boosting the economy of the countries wherein the business is spreaded by creating more jobs, production, distribution, consumption and exchange services. With this, the economy boosts and ultimately brings profits.

4) Improved skills- Transnational or multinational companies plays a key role in improvising the skills of labour by giving them the specialised tasks, assessing and evaluating their performances and honing their skills.

Ans 2. National protectionism is a way of restricting imports in a country by levying tariffs & quotas on imported goods. Here is a concept which elucidates how national protectionism kill jobs.

1) Through tariffs- This is true that labour is globally connected but if a country restricts its imports by levying taxes and quotas, it will ultimately affect the production activity of the country exporting the country as there would be no more demand of the product because of hefty amount of taxes

2) Import quotas- Further by restricting the amount of goods to be imported can prove to be harmful in importing the goods and will ultimately affect the labour in ineffecient way.

3) Administrative barriers- Some countries use administrative barriers as a weapon to prevent the country from importing goods. These barriers can be use in case of food products, safety and electrical products by adhering to their rules only and not allowing other countries to participate. Thus, it will decrease the demand for such products and in other countries the production will slow down due to less demand which will ultimately affect the services of a labour.

4) Export subsidies- The purpose of the government is to increase exports by giving more subsidies in exporting the good than to import good. So, the countries focuses more on exporting than to import the goods.

All the points discusses above, in some ways affects the labour because national protectionism restricts imports. The more the national protectionism, the lesser the imports which will decrease the demand for the product in the importing country and will hamper the production process of exporting country. This will affect the growth of the labour in an adverse way and will kill their jobs.

Ans 3. No, global division of labour does not mean modern slavery in a real sense. It means that:

1) Division of labour helps in dividing the workforce based on their specialisation so that they can perform in the most dignified manner. It increases their confidence, boosts production and maintain quality.

2) F.W Taylor who gave the concept of Division of labour came out with the positive results of increasing the efficiency of the workforce by maintaining standard output, time and motion study and sytematic ways of doing work.

3) Global division of labour is to allocate the services to labour in different countries based on the variety of resources and skills the country is having. For example if a car manufacturing company finds India as a hub where labour cost is less, then such company will set up their plant in India to lower the cost and increase the production.

4) Global division of labour increases harmony, interdendence and mutual understanding among the people and countries. It does not results into slavery.