Download - 11/13/13 “Race to the Bottom” The game we played in class represents a global process called the…
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11/13/13
“Race to the Bottom”
The game we played in class represents a global process called the “race to the bottom.” How would you explain what the “race to the bottom” is?
On desk: Transnational Capital Auction packets
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11/13/13Econ. Agenda
1.What is the race to the bottom? (class notes)
2.How does the race to the bottom affect us? (group activity)
HW: None
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11/13/13 Class Notes – Race to the Bottom
“Race to the bottom”•Companies/countries compete with each other by cutting wages and living standards for workers.
•Companies will move the production of goods to the place where:• the wages are lowest• taxes are lowest• workers have the fewest rights• the least amount of govt. regulations exist
•They are “racing to the bottom” of the world!
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11/13/13
Transnational or multinational corporation:•Company that has operations in more than one country
Exploitation: •to take unfair advantage of
Example: Brandon is poor & desperate, so Tania exploits him by making Brandon do her senior research paper for only $5.
Outsourcing: •sending jobs outside of the country
o “If you can find someone else to work cheaper, give them the job!”
o Workers don’t believe they are being exploited because they are getting paid more than they were before!
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Which job would you rather have?
Farmer
Work 6am to 6pm
Paid .20 cents per pound of corn
Yearly income: $1,000
Factory Worker
Work 7am to 6pm
Paid $3.00 per day
Yearly income: $1,095
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Class Notes
Are sweatshops good for the world?
•Low Development Countrieso Become middle/high development if they can produce goods
& give population incomeo Transnational corporations provide jobs & pay more than the
local factories
•“Anything is better than nothing.” …..right??
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How does the race to the bottom affect us?
Each group crafts a statement to the world about how the race to the bottom affects them:
1.Workers in third-world countries2.First-world companies3.The environment4.Leaders of third-world countries5.First-world workers6.First-world consumers
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How does the race to the bottom affect us?
Workers in third-world countries
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How does the race to the bottom affect us?
First-world companies:
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How does the race to the bottom affect us?
The Environment:
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How does the race to the bottom affect us?
Leaders of third-world countries:
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How does the race to the bottom affect us?
First-world workers:
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How does the race to the bottom affect us?
First-world consumers:
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Is it our responsibility to do something about the race to the bottom? Why or why not?