Work and Trade

The current global economy is positioned in a way, where almost all the countries are having trade relations with each other. This import and export between economies has become the spine of any successful society. Trade and work can only stopped, if there is a war or natural calamity. There are millions of transactions occurring all over the world, which help sustain each and every country. One late arrival or submission can lead to major crisis in any nation. Hence, in order to maintain economic peace and continuity, trade has to occur continuously and be balanced.
In this constant struggle to maintain a delicate balance, ethics and humanity is somehow being put to test. The three pillars of a modern economy (Liberalisation, Privatisation and Globalisation) have helped global economies to progress. But many big corporations, whose business expands all across the globe, are concentrated on maximising their profits and minimising their costs. This cut-throat competition has encouraged them to hire cheaper labour or outsource production to countries which have highly available and cheaper labour force. This action has the following effects:
- The human resource in developed countries is not being optimally utilised. Many people in these countries are losing jobs and this in turn is harming their economy.
- The labour laws and their implementation in developing or under-developed countries are poor. This makes it easier for the companies to exploit them. The governments are not very concerned about the utilisation of human resource; their actions are mainly driven by the corporations who offer a high foreign direct investment.
- The established corporations bring huge scale of money and tend to utilise other resources of country, apart from the man power. This tends to de-moralise the small business houses and entrepreneurs. Hence, the local industry is unable to grow and contribute to the economy.
The above are only the macro-effects which are noticed in case of foreign investment. There are several other issues like cultural differences, laws, child labour, etc which can harm any developing or under-developed economy. The more serious agenda is how sensitive a company is towards the country’s economic and social interests. Sometimes, corporations will make huge investments and provide jobs, but in the longer run they tend to think of only minimising their costs. So when they reduce their interest in the country, the economy suffers a great setback. Hence, corporations have to make sure that when they venture abroad; first, they respect the culture and rules of the society so that business can run without any protests or social issues. Second, they do not disturb or harm the economy of the nation. Often, profit-driven companies think more about their own wealth, rather than that of the nation.
Regarding the Trade in global prospect, there are a few observations which can be noted. First, almost all countries are trading with each other. There is a sense of mutual inter-dependence and understanding. Second, trade is greatly being affected by the ever-fluctuating oil prices. The oil-producing countries are able to manipulate and control the trade relations with other countries. There has to be a balance in terms of oil-trading. Oil-rich countries should make sure that a fair trade is maintained and that poor countries are not over-exploited. Since oil is an exhaustible resource, the global governing bodies should try to preserve it and at the same time, look for alternate resources of energy. Lastly, trade has become a major influence in how countries behave with each other. Hence, a sound and balanced trade should be maintained with other countries to ensure there is no international rivalry or hatred, which only leads to more problems.
In conclusion, the world governing bodies should be on a strict look for labour movement, foreign investment, labour laws, trade laws and trade regulations. It is very hard for citizens to be involved and change things. Governments and international bodies should work for the best interest of all.