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Global Business Environment - Coursework Example


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Global Business Environment

Nevertheless, all problems are being blamed upon the increasing number of imports into South Africa. According to a report for University of East Anglia in Britain, Chinese products into South Africa have cost them seventy seven thousand jobs for the last one decade. Besides, these Chinese imports are leading to slow industrial production, whereby it grew by fourteen percent from 2001 to 2010; instead of the anticipated growth of nineteen percent (Mabuse, 2011, 1). In fact, this is attributed to loss of market shared by South Africa to China, whereby making the exports to Saharan Africa lower than expected. In this case, one of the crucial ways through which workers in African countries have been suffering due to Chinese products, is their contribution to the problem of unemployment. Furthermore, this has raised concern among official, which have experienced the impact of these Chinese products in their country. For instance, South Africa recorded 25% rate of unemployment due to these Chinese product (Maswanganyi, 2012, 1). Obviously, this has an adverse effect on African workers given that it subjects them to cases on reduction of minimum wages, and job insecurities. In addition, the retrenchment of approximately 350 000 workers in the manufacturing industry since 1990 has increased to 1.2 million job by 2010 (Mabuse, 2011, 1). This significant loss of employment by workers in African countries can be attributed to displacement of domestic production through imports from China during the

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period between 1992 and 2010 (Mabuse, 2011, 1). In this case, the number of imports from China has grown between 1992 and 2010, where it was recorded 24 117in 1992 and by 2010, the figure had risen to 77 751 (Adisu, 2010, 23). Ten industries in South African, which have increased level of Chinese imports, are attributed to conventional labour intensive sector, which entails textile and clothing, leather products and furniture. Therefore, imports of these Chinese products are imposing a significant competition in these domestic industries, whereby increasing their likelihood of retrenching workers due to decreased production and high operating costs. Lastly, challenges experienced by these workers in Africa are not constrained to competition imposed on domestic products by Chinese imports. Idun-Arkhurst & Laing (2007, 3), explain that the flow of these Chinese products has led to conflicts over labor practices and market strategies applied by various industries in African countries. For instance, increased preferences of hiring Chinese national, while the African workers are expected to work for long hours by Chinese managers has resulted to conflicts (Sautman & Hairong, 2007, 114). Moreover, these labor conflicts are caused by the practices that are introduced by these Chinese managers, whereby they are conflicting with the local labour laws and culture. 2. What would you plea to the government if you are an African textile manufacturer? As one of African textile manufactures, I would call for political solutions for this problem, which is resulting from Chinese imports; in fact, it has also resulted to adverse effects on South African job market. Moreover, I would urge the government to impose countervailing duties for trading partners subsidising their exports, since this has been permitted by World Trade Organisation rules. On


Global Business Environment Name: Tutor: Course: Institution: Date: Global Business Environment 1. Why do African workers suffer from cheap Chinese products? African workers in have been suffering significantly due to cheap Chinese products being imported into their countries…
Author : milanharber
Global Business Environment essay example
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