Asian Journal of Research in Business Economics and Management
Year : 2012, Volume : 2, Issue : 11
First page : ( 81) Last page : ( 95)
Print ISSN : 0000-0000. Online ISSN : 2249-7307.

Chinese low road and global race to the bottom

Bose Annavajhula J.C.

Associate Professor, Department of Economics, Shri Ram College of Commerce, University of Delhi, Delhi.

Online published on 3 November, 2012.

Abstract

The low road competition coming from the Chinese hell factories such as in Shenzen can fuel the global race to the bottom and bring about substandard and horrendous labour practices everywhere in the duty-free open economy context that the World Trade Organisation is eventually supposed to create. This is the hypothesis that this paper examines and supports by using the theoretical and empirical knowledge of the changing situation in the global auto industry in general and Chinese auto industry in particular as the template.

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Keywords

Low road competition, Chinese labour practices, lean and mean, WTO and open economy, Race to the bottom.

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