27.

Explain globalization and the new international division of labour by giving a suitable example.

Globalisation and a New International Division of labour:

1. With the rapid progress of globalisation, a new International division of labour has emerged. It has caused more and more routine manufacturing production and employment in the third world cities.
2. The Nike Company progressed profusely from its inception in the 1960s. This company became a giant exporter of shoes from Japan and sold them at athletic meetings.
3. The Nike Company grew to a multinational enterprise or transnational corporation. The headquarters of the company are in Beverton.
4. As the quantum of costs increased the company shifted its production to South Korea in mid-1970s. However, labour costs grew in South Korea, therefore, in the 1980s production widened to Thailand and Indonesia. In the 1990s the company's productions are being made in India. It clearly shows if labour is cheaper elsewhere production centre will shift somewhere else. This policy of shifting the production centres has certainly made the labouring population very vulnerable and insecure.