“The Low Price” of the textile discounter KiK – consequences for labour conditions in textile factories in Bangladesh: Difference between revisions

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=== <u>General introduction on globalization</u> ===
=== <u>General introduction on globalization</u> ===


Globalization is more than a word for a worldwide phenomenon; it affects all of us in our today’s lives. It can have considerable, concrete negative effects like the loose of someone’s job or can rest rather unseen, which means without consideration of the consumers when for example parts of cars are built in Eastern Europe and the complete car is later sold in Germany and therefore considered as “German-Quality-Product”. Processes of globalization have direct impact on our consumption, like the availability of fresh tropic fruits, coffee and cheap clothes. Globalization has also touristic and migrational aspects that affect the cultural perspective of a country (Backhaus, N. 2009, 13-14). It is really complicated to define globalization in general, because different groups like globalization supporter and antagonists have a very unequal look on this issue. Another problem is that globalization creates winner and loser, so it is problematic to make a general judgement on if the globalization process is good or bad.  
Globalization is more than a word for a worldwide phenomenon; it affects all of us in our today’s lives. It can have considerable, concrete negative effects like the loose of someone’s job or can rest rather unseen, which means without consideration of the consumers when for example parts of cars are built in Eastern Europe and the complete car is later sold in Germany and therefore considered as “German-Quality-Product”. Processes of globalization have direct impact on our consumption, like the availability of fresh tropic fruits, coffee and cheap clothes. Globalization has also touristic and migrational aspects that affect the cultural perspective of a country (Backhaus, N. 2009, 13-14). It is really complicated to define globalization in general, because different groups like globalization supporter and antagonists have a very unequal look on this issue. Another problem is that globalization creates winner and loser, so it is problematic to make a general judgement on if the globalization process is good or bad.  
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=== <u>Outline of my case study</u> ===
=== <u>Outline of my case study</u> ===


In my case study I like to concentrate on the economic side of globalization. As introduction I will focus on market economy and the allocation of world trade. Then I will highlight global crises that can be seen as consequences of a global economy. After that I like to focus on some detailed example like the textile industry as an example for changes in production and the labour conditions. I also like to do a short side track to the Global Compact and the Corporate Social Responsibility (CSR) and the limit of such commitments. As possible future prospects I will finish with an overview about some models of employment for the future.  
In my case study I like to concentrate on the economic side of globalization. As introduction I will focus on market economy and the allocation of world trade. Then I will highlight global crises that can be seen as consequences of a global economy. After that I like to focus on some detailed example like the textile industry as an example for changes in production and the labour conditions. I also like to do a short side track to the Global Compact and the Corporate Social Responsibility (CSR) and the limit of such commitments. As possible future prospects I will finish with an overview about some models of employment for the future.  
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=== <u>First version of my case study</u> ===
=== <u>First version of my case study</u> ===


==== Introduction  ====
==== Introduction  ====
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“The phase-out of quotas led to price reductions and strong competition among the poor countries that export clothing and whose national income is heavily dependent on exports.” “The poor countries, competing to retain their clothing industry, try to offer the lowest wages. If, however, one looks at the various cost components from the viewpoint of the buyer/company, wages only account for 0.5-1 percent of the ultimate selling price of the product, as the following chart illustrates. In contrast, marketing and advertising, as well as the profit for the company in Germany/ Europe amount to about 25 percent of the endselling price. An increase in wages is, therefore “peanuts” in the eyes of the buyer.” <ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref><br><br> <br>  
“The phase-out of quotas led to price reductions and strong competition among the poor countries that export clothing and whose national income is heavily dependent on exports.” “The poor countries, competing to retain their clothing industry, try to offer the lowest wages. If, however, one looks at the various cost components from the viewpoint of the buyer/company, wages only account for 0.5-1 percent of the ultimate selling price of the product, as the following chart illustrates. In contrast, marketing and advertising, as well as the profit for the company in Germany/ Europe amount to about 25 percent of the endselling price. An increase in wages is, therefore “peanuts” in the eyes of the buyer.” <ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref><br><br> <br>  


[[Image:Costs.jpg|frame|center|600x300px]]  
[[Image:Costs.jpg|frame|center|600x300px|Costs.jpg]]  


This figure is adapted from the brochure of the CCC.<ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref> “Only around 14 percent (factory and wage costs) remain in the country of production, e.g. Bangladesh.” <ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref>  
This figure is adapted from the brochure of the CCC.<ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref> “Only around 14 percent (factory and wage costs) remain in the country of production, e.g. Bangladesh.” <ref>Who pays for our clothing from Lidl and KIK? Published at Kampagne für Saubere-Kleidung (Clean Clothes Campaign; CCC). Published as brochure at January 1st, 2008: http://www.saubere-kleidung.de/downloads/publikationen/2008-01_Brosch-Lidl-KiK_en.pdf (p. 13).</ref>  
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--[[User:Reibe|Reibe]] 21:31, 22 January 2011 (CET)


==== References<br>  ====
==== References<br>  ====
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