Topic
In an essay intended for an audience made up primarily of people who live in your region of the country, examine the effects of a decision to support a particular corporation, buy a specific item (or shop at a particular store) that is commonly available to local consumers. For example, in the film Wal-Mart: The High Cost of Low Price, Robert Greenwald explores the impact of purchases at Wal-Mart. The Corporation identifies the devastating effects that corporations have on the world. In your essay, you might consider other common items: entertainment equipment such as televisions, certain kinds of clothing, gasoline, services such as wireless telephone service, or transportation such as airlines or a particular brand of automobile or type of food. You should, however, choose a specific business or company, like Facebook, Apple, Microsoft, General Motors, Monsanto, Bayer, Pfizer, or Chiquita in order to focus on a specific example. The subject of your investigation is up to you, but please try to be original and avoid the topics that are relatively familiar (or the examples from class), such as Wal-Mart, McDonalds, Nestle, Nike, cigarettes, and Starbucks.
Once you have selected the corporation that you want to focus on, closely examine the reasons that you--or any consumer--might choose to buy that item. Look at the specific choices available for that item--for example, the different kinds of cars that you could choose from if you were going to buy a car. Look at the advertisements and websites for the product or service as well. Additionally, research the possible effects that purchasing that item might have on the local economy, the global economy, politics, the environment, your health, the well-being of your neighbors and community, the workforce, and any other relevant effects. Where does our money go? Do they contribute to or support any sort of legislation that we should be aware of? Consider interviewing people who have made such a purchase and review articles you locate on the effects of your chosen purchase.
After you have explored these issues, write an essay (5 or more pages, double-spaced, in 12 point professional font such as Times New Roman) in which you make an argument about whether or not, as responsible consumers, we should spend our money on a particular product, company, or service.
Key Features:
- An introduction that gets the readers attention and states your thesis. Provide an overview of your entire essay. here. Whether or not you decide to use an essay map in a thesis that lists your subtopics, be sure to include a claim, or unifying element, that explains your overall argument. Unless you have a good reason to place it somewhere else, this should be the last sentence of your introduction and should state specifically what your recommendations to local consumers regarding your product, service, or company are.
- A definition of key terms: carefully explain the necessity or importance of the product that you are writing about to give your readers a clear idea of your topic (but be careful not to let this section take over your essay--limit it to one paragraph). If you are writing about a product such as oil, provide background information that explains the need for oil in the U.S., or the available alternatives to importing foreign oil.
- Appropriate organization and paragraphing, including use of clear topic sentences that introduce your subpoints and connect them clearly to your thesis. The paragraphs should be in a logical order and use transitions to show links between ideas.
- At least three (3) library sources, such as articles from EBSCO or Proquest.
- At least three (3) reliable online sources; try searching using .
- Explanations that are supported with specific evidence (your evidence may come from your personal experience, field research, class readings, and library and Internet research).
- The use of clear, well-reasoned, logical arguments as discussed in How to Write Anything.
- A conclusion that provides closure to the essay and considers the implications of the argument.
- MLA Style (heading, margins, title, line spacing, page numbering, parenthetical note(s), and Works Cited page.
10.Observance of the conventions of standard written English.
Reflection on the Transnational Capital Auction
The Transnational Capital Auction vividly illustrates the complexities and ramifications of globalization, particularly the race to the bottom where countries compromise their labor and environmental standards to attract foreign investment. The following sections address the follow-up questions posed regarding this scenario.
1. No Environmental Laws: Implications for Capital
Having no environmental laws in a country typically means that there are fewer regulations governing pollution, waste management, and resource extraction. This absence allows capital to exploit natural resources without regard for ecological sustainability. Companies may set up operations that prioritize profit over environmental health, leading to significant degradation of local ecosystems and communities. Capital would likely invest aggressively in such environments to minimize costs, but at the expense of long-term ecological viability.
2. Social Effects of Low Wages
Low wages can lead to severe social consequences, including increased poverty rates and diminished quality of life. Families might struggle to meet basic needs such as food, shelter, and healthcare. To survive, families may resort to several strategies to supplement their income:
- Multiple Jobs: Adults may take on multiple low-paying jobs.
- Child Labor: Children might be forced to work to contribute financially.
- Community Support: Families may rely on community resources or informal networks for assistance.
- Informal Economies: Engaging in informal or illegal economic activities to earn additional income.
3. Corporate Investment: Benefits vs. Harmful Effects
Benefits of Investment Harmful Effects of Investment
Job creation in local economies Exploitation of workers with low wages
Infrastructure development Environmental degradation
Technology transfer and skill building Erosion of local cultures
Increased consumer goods availability Increased inequality and wage disparity
4. Driving Down Conditions
In the auction simulation, participants may have felt compelled to drive down conditions due to competitive pressures. The fear of losing potential jobs or investment opportunities perpetuated a cycle of underbidding. The lack of unity among participants made collective action difficult; everyone was looking out for their own interests rather than the collective welfare.
5. Beneficiaries of the Race to the Bottom
The primary beneficiaries of the race to the bottom are multinational corporations that capitalize on lower operational costs in developing countries. Conversely, local workers and communities suffer from exploitation, poor working conditions, and environmental degradation. To combat these issues, international coalitions among workers, labor unions, and advocacy groups could be formed, fostering solidarity across borders and pressuring companies to adhere to fair labor practices.
6. U.S. Response to the Global Race to the Bottom
In the U.S., responses could include:
- Strengthening Labor Laws: Advocating for stronger protections for workers' rights domestically.
- Encouraging Ethical Investment: Supporting companies committed to fair labor practices.
- Promoting Fair Trade: Emphasizing trade agreements that protect labor rights and environmental standards.
- Raising Awareness: Educating consumers about ethical consumption choices that favor responsible companies.
7. Real Human & Environmental Consequences
If capital were to accept low bids on minimum wage, worker organizing, taxation rates, and environmental laws, the consequences could be dire:
- Worker Exploitation: Laborers may face unsafe working conditions and insufficient wages, leading to health issues and decreased morale.
- Environmental Damage: Relaxed regulations could result in pollution of air and water supplies, causing long-term health problems for communities.
- Community Displacement: Industrial activities may displace local populations or disrupt traditional livelihoods.
8. Investment in Poor Countries
While investment can bring about development opportunities in poor countries, it often comes at a high cost. The statement that "poor countries need investment" overlooks the potential for exploitation and negative social impacts. Evidence from the auction simulation suggests that investments often prioritize profit over people, leading to worker exploitation and environmental harm. Therefore, investment is not inherently beneficial; it requires stringent regulations and a focus on sustainable development.
9. Stopping the Race to the Bottom
People in poorer countries can take several steps to resist downward leveling:
- Organizing Labor Unions: Strengthening labor movements can empower workers to demand fair wages and conditions.
- Advocating for Policy Changes: Engaging in political processes to push for stronger labor laws and environmental protections.
- Building International Coalitions: Collaborating with global organizations can amplify their voices against exploitative practices.
10. Corporate Relocation Motivations
The company's investment director likely feels compelled to relocate production due to the reduced costs associated with "Friendly-to-Capital" points like lower wages and minimal regulations. These factors enable higher profit margins but come at the expense of domestic jobs and ethical labor practices.
11. Impact on Workers in the U.S.
The race to the bottom also affects U.S. workers by creating a competitive environment where employers may use low-wage competition as leverage against domestic labor demands. Over time, this could lead to wage stagnation and a widening income gap between high-wage and low-wage workers as highlighted by Laura Tyson's observation about globalization's impact on wage growth.
In conclusion, the Transnational Capital Auction simulation exposes the critical dilemmas faced by countries in attracting investment while safeguarding their workers' rights and environmental integrity. It highlights the necessity for collective action both locally and globally to prevent exploitation and promote sustainable development practices.