This week's discussion about a list of trends and critical uncertainties was done with Laura Weinman Kerry, with focus on global migration because it was both Laura's and my previous topic as well. While Laura researched more details about citizenship and national identity, I looked bit more into the issues with international economic transfer, such as outsourcing and fair trade among countries.

Globalisation and the Economic Transfer

  • Outsourcing
    • Immigration vs. outsourcing: Effects on labor markets: shows either immigration or outsourcing of a labor-intensive fragment of production may serve to raise the wage rate of national labor in a developed country (regarding Anti-globalizers’ concern that they will lower the wage rate). (positive perspective)
    • Skilled Immigration and Economic Growth: Skilled immigrants have achieved great success in founding U.S. engineering and technology startups, which have in turn contributed greatly to the country's economic growth over time. (positive perspective)
    • Back-sourcing?
    • Outsourcing and financial performance: A negative curvilinear effect: the existence of organisations can be attributed to market failure that induces transaction costs; there are other industry factors such as the need for local responsiveness versus global integration (The Multinational Mission: Balancing Local Demands and Global Vision by C.K. Prahalad, Y.L. Doz); heavy reliance on internal sourcing leads to poor performance, and it is at its worst when firms apply it by default (Domberger, 1998)....Firms that become hollow or virtual lack a solid basis for competing and can neither innovate enough nor learn much (Chesbrough and Teece, 1996; Kotabe, 1998). (neutral~negative perspective)
  • Fair Trade
    • Re-embedding global agriculture: The international organic and fair trade movements: Fair trade aims to ensure that the poorest actors in a supply chain benefit more from the overall financial value creation as a development tool.... large corporations may capture the most lucrative share, threatening the sector’s progressive social and environmental foundations (Buck et al., 1997). (positive perspective)
    • Fair Trade and Harmonization: Prerequisites for Free Trade?, Volume 2: The conflict in each policy area tends to center around complaints by countries with high standards against the countries with low standards….international harmonization has been seen from the beginning not only as a desirable end in itself, but also as a necessary condition to adoption of higher labor standards in any one country. Suggestion: it should be possible for the International Labor Organization (ILO) and General Agreement on Tariffs and Trade (GATT) to agree on the principle that comparative advantage in trade should not be based on the violation of the most fundamental workers’ rights, but not including other more technical labor standards relating to wage differentials and occupational safety and health. (neutral~negative perspective)
    • Black Gold: 2006 documentary film that focuses on the coffee growers of the Oromia Region of southern and western Ethiopia. (positive perspective)