Page 4

awo201405 Final.indd

The changing global economy We live in a globalised world. What we eat, what we wear, what we read, what we watch, may have come from anywhere in the world. That means that no matter where we live, no matter where we work, we are part of the global economy. This has important consequences for workers and how they organise. New communications and transport technologies Beginning in the 1950s, the spread of containerised shipping, rapid and affordable plane travel, and reliable international phone and electronic communication revolutionised the global economy by making international production and commerce simpler and cheaper. As a result, a safety pin made in a distant country is likely to be cheaper than one made at home. The internet, advanced phone and video technologies, and the computerisation of fi nancial markets have linked national economies together into one global economy. Companies have global structures and global systems Companies develop global systems to coordinate their activities - from mining and extraction, to production, to retail. More and more sectors are being added to this global system, such as health and education. National economic and political safeguards for workers are being challenged to meet the demands of a global marketplace. Companies must compete globally in order to succeed To expand globally, companies must also compete globally. Whether companies like it or not, markets are no longer national, they are international. To stay profi table and expand in the global marketplace, they must fi nd ways to lower their production costs and increase effi ciency. They will search the world for the cheapest raw materials and compete for access to them. They will look for the places with the cheapest labour, lowest safety and environment standards, and the friendliest governments and tax systems. They will seek new ways to reduce overall costs of transportation. They will continually be on the lookout for new markets. 4 aawl.org.au - Asia Workers Organising - Global Picketline


awo201405 Final.indd
To see the actual publication please follow the link above