The paper "International Labour Division: Features and Effects " is a perfect example of business coursework. This paper will be presented in three parts. The first is an introduction which consists of definition and the general overview of the concept. The subsequent part will discuss the origin of international labour division in brief and trace the root of the concept analyzing why it spread fast. The third part will describe the features of the International labour distribution. The next will expound the effects of the application of the concept. The conclusion part will summarize the whole discussion, giving the way forward for the implementers of the concept. International labour division may be termed as an arrangement whereby various parts of production processes are allocated to different parts of the globe.
This concept is based on allocating production process according to the production force of every individual or region. Therefore, each region is supposed to specialize in an activity that it will benefit most. The new International division of labour is the creation of globalization. It is the process whereby individuals do not confine themselves in the national boundaries of one country, making the transferability of labour to be easy.
The trend of labour transference especially on the global market has become very common. Labour is now moving from Asia to the United States and from less developed countries to developed countries. This is because companies would like to maximize their returns on cheap labour from developing nations. Some companies have gone multinational. These multinationals have established themselves where the cost of labor is cheap (Marshall, 1998). Origin of Contemporary International Division of Labour This emerged because of the orthodoxies of capitalism that entrenched itself in the free international trade.
By the 1970s, most nations were having open economies. The implications of this system of the open economy were extended to labour and other markets (Hereo, 1996). Around the 1970s a group of German Researchers diagnosed the need of an International Labour Division. In their thesis, the world market was to embrace both sites of production and labour. This was to involve and benefit both industrialized nations and underdeveloped countries. It was in contrast with the traditional one which had only two players; the industrialized countries and the producers of raw materials.
Wealthy countries in the north did business mostly amongst themselves. The newly independent less-developed nations picked up the idea as the producer of mainly raw materials and Agricultural goods to developed countries. The monopolists from the industrial powers seized the opportunity by establishing themselves in the less industrialized states. They put up ultra-modern industries and processing zones. For imperialist nations to have a grip on the control of the resources of underdeveloped nations, they set guidelines that ensured that they were always in control of them.
These policies, however, did not go well with these nations. In an effort to fight them, developing nations started developing Mutual Corporation in business with socialist nations. Many nations have become integrated into this system; including the former socialist nations, which are now trading amongst themselves and with capitalist nations.
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