Essays on The Impact of Multinational Firms on Local Labor Markets Case Study

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The paper 'The Impact of Multinational Firms on Local Labor Markets' is a perfect example of a Management Case Study. China's labor market is regulated by the Labour Law of 1994, which has established key norms for applying to employment relationships, covers matters like minimum standards, labor contracts, as well as dispute resolution. With more than 1.3 billion people, as well as a GDP, improving at an annual rate of 10 percent, China has swiftly developed into one of the leading global market contributors. The economic reforms between the late 1970s and early 1980s led by Deng Xiaoping have immeasurably improved China’ s living standard and facilitated economic development; regrettably, this outstanding growth was achieved through the forced labor of children, women, and men.

Besides that, China’ s distinctive combination of decentralized economic power and Communist ideology has resulted in the utilization of both unsanctioned and state-sanctioned labor force, of which the former is propagated by means of corruption, ineffective policies, as well as inadequate legal enforcement. There are no available statistics on the magnitude of forced labor because of China’ s authoritarian political system.

Still, reports, news articles, research, as well as the testimonies of former forced laborers confirm the situation severity. According to Lepillez (2008), forced labor that is state-sanctioned is extensively justified and promoted by the Chinese government by means of the ‘ reform through labor’ , which is a Communist doctrine. Basically, this philosophy commends the labor virtues as a means of transforming rebels into new socialist individuals; still, it has practically resulted in the creation of numerous Laogai, which are prison labor camps. In the last few decades, the economy of China has transformed itself, but still, issues associated with labor relations are prevalent.

In consequence, this has affected more than 250 million migrant labor forces even if China appears to be the globalization conqueror. Recent statistics show that the rate of unemployment in China has reduced to 4.04 in 2015 and has averaged 4.13 percent between 2002 and 2015.8


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