The international division of labor is counterproductive!

The drummers of globalization are still vocal that the international division of labor is boosting productivity. The exact opposite is the case! Because the international division of labor creates a considerable additional effort in the production of goods:

 

Additional effort in the "international division of labor":
There are unnecessary transport costs!
Long distances and long journeys to the consumer cause a considerable work and expense. First of all, roads, trucks, ships, ports and airplanes have to be built. Added to this are the expenses for subsequent goods traffic, logistics and sales.
Anyone who thinks it's a rational process, when the components of an electric toothbrush (or a computer, a car, a pair of trousers) from all five continents are zusammengekleltt to put them together in a distant place, is greatly mistaken.

 

Additional effort in the "international division of labor":
The consequences of environmental destruction are hidden!
On German roads alone, the unnecessary (due to globalization alone) truckloads kill around 1,000 people each year as a result of traffic accidents in traffic. The number of injured is much higher.
These victims are still relatively minimal, taking into account the impact of environmental damage caused by the exhaust gases superfluous trucks, aircraft and container ships.
Unfortunately, statistically, it is difficult to tell how this environmental crime affects the health of the population.

However, the burden of globalization owed nursing, the related loss of labor and the makeshift elimination of the worst environmental and building damage on the account of productivity. Because when manufactured in your own country close to the consumer this additional burden is eliminated.

Let us not forget: 30 years ago, when real wages (ie purchasing power) and pensions of the Germans (French, British, Italians, etc.) were significantly higher than today, about half of today's transport volume came from Germany.

Conclusion: Just the additional transport and environmental damage related to the international division of labor burden the profitability (and the cost) with at least 20%, you would finally consider it.

 

Additional effort in the "international division of labor":
Long delivery times - inflexible productions!
No manufacturer knows in advance how to sell a new product or the new fashion. If a manufacturer produces close to the sales market, he can start with a low, risk-free run and, if necessary, quickly follow suit.

But if you have the fashion produced in the Far East, where he usually has to calculate at least a three-month delivery time, can not reorder at short notice. Such a producer must estimate the demand in advance and commit himself.
Thus, on the one hand, there are often overproductions (the surplus goods have to be later sold off or destroyed), and on the other hand bottlenecks, where demand can not be satisfied.

The inflexible production thus prevents demand-driven market saturation. For fear of supply bottlenecks is usually more produced than ever deductible. This fact also significantly reduces productivity.

 

Additional effort in the "international division of labor":
Promotion of corruption
In many distant low-wage countries, business is only possible if authorities and business partners are lubricated. Of course, this illegal effort must also be included in the profitability calculation.
In addition, one should see that corruption is one of the worst scourges of humanity. To support this evil is the most disgusting thing one can do to low-wage countries.

 

Additional effort in the "international division of labor":
Expensive language barriers
Language barriers cost money! It is always easier to communicate with business partners in your native language. Expensive misunderstandings and incorrect productions are thus avoided.
Besides, foreign languages are not available for free. The tedious learning of a second or third language requires a considerable investment of time. This additional effort must also be blamed on the international division of labor.

 

Additional effort in the "international division of labor":
Unfulfilled recourse claims
The international division of labor carries additional risks. Anyone who, for example, as a client, agrees to a dumping offer from an Eastern European company must expect to be unable to enforce his justified complaints.

The same experiences had to go through many global players who believed that they had found a good low-cost farmer in the Far East.
Despite many years of legal disputes, they often stuck to their claims for damages. The temporal and financial strength of these long-standing processes, both the destruction of unusable scarce goods, in turn burden the productivity of the international division of labor.

 

"The international division of labor (globalization) is in principle a highly unproductive undertaking!
It only becomes lucrative through the exploitation of workers."

 

Additional effort in the "international division of labor":
Outage loans and state guarantees
The export of goods proves to be unprofitable at the latest when justified claims are not paid.
The international division of labor multiplies the default risk. Even state institutions in some European countries do not always pay their bills.

 Even the new ships secured with state guarantees are often a fiasco and drive German Landesbanken into ruin (at the expense of the taxpayer). Once again, the profitability and thus the productivity of the international division of labor falls by the wayside.

 

Additional risk in the "international division of labor":
destruction of capital
Many German (and foreign) savers have invested their money in ship funds on the recommendation of their investment trustee. But since 2008, the freight rates went down because there are too many container ships worldwide (you can not estimate and control the demand in advance). The result: total loss of many deposits, which were often intended as a pension.

 

Additional effort in the "international division of labor":
Gassing of textiles
So that textiles on the long ship route from Far East to Europe are not attacked by pests, often a complex special treatment (eg Eingasung) takes place. Apart from the costs of this procedure, the health damage caused by these pesticides must also be taken into account.

 

Additional effort in the "international division of labor":
Failed partnerships
Many companies have built up production facilities in distant countries with great vigor and high investment costs, which later had to be abandoned.
At times, the obligatory business partners proved to be dubious, sometimes it was national laws, intrigues or authority arbitrariness that brought the project to failure.

Of course, even those who invest in their native lands must expect failure. But the risk abroad is much higher because of its many imponderables and thus belongs to the factual offsetting of productivity.

 

Additional effort in the "international division of labor":
Excessive quality control
The big brand manufacturers are constantly sending their managers and inspectors around the globe to meet the quality standards of their goods. Of course, these necessary measures are much more cumbersome than checks that could be carried out on site or at least in one's own country.

 

Additional effort in the "international division of labor":
Complex contracts
Those who invest in distant developing or emerging countries or work with foreign suppliers goes on thin ice. Because the legal situation in these countries hold dangerous traps that surprise even experienced global players again and again.
To avoid the worst mistakes often an army of lawyers and interpreters must be engaged. These circumstances also weigh on the shoulders of productivity.

 

Additional effort in the "international division of labor":
Forced partnerships
Many emerging economies have little in mind with a free market economy according to Western understanding. They need the know-how of foreigners, but do not want to be dependent on them.
Company foundations and new production facilities are therefore only approved in cooperation with local entrepreneurs. The foreign investor is being downgraded to a co-partner, which also affects productivity.

 

The international division of labor worsens productivity by at least 100 percent!
If you sum up everything, the workload of the international division of labor increases by at least 100%.
For global players, this unprofitable outsourcing pays off mainly because of the large wage discrepancies. Because it succeeds excellently to systematically exploit the workers in the low-wage countries, relocating production becomes a success. Without this effect, the international division of labor would be a highly unproductive nonsense.

Only the billion-dollar exploitation of the human labor force makes the impossible possible, turns the rules of reason and logic on its head. In this sense, globalization is the continuation of colonialism.
The "success" of the international division of labor follows the same principle as the former slave trade.

If the noble brand-name companies would allow the low wage earners a reasonably humane hourly wage of at least 1 to 2 euros, the system of international division of labor would already collapse.

 

Conclusion:
The international division of labor increases production costs by about 100%! Only through the inhumane exploitation of the workforce, especially in the low-wage countries, has it been possible to limit the decline in purchasing power since 1980 in old industrialized countries such as Germany to 15 to 20 percent.
Beneficiaries of free trade delusion were mainly global players and their shareholders, most of whom had fantastic gains in both power and capital.

The politicians under the influence of the over-powerful globalization lobby will not change the free-trade ideology unless the voter demands a turnaround.
And the voter will demand a paradigm shift only if he understands the world economic connections reasonably and recognizes group-friendly liberalization theses as propaganda lies.

Anyone who reads the book "CAPITAL AND GLOBALIZATION" will quickly notice how far he can still trust the leading opinion leaders in politics and the media - where the disinformation and distraction begins and the dulling of the people ends.

 


Excuse me!
There is no equal opportunity - also with regard to the formation of opinions. While the capital (corporations, speculators, lobbyists, media, governments) can afford the best translators, I have to settle for financial reasons with a simple language program. I hope that the text is nevertheless reasonably understandable and that no mistakes have occurred. Thank you for your understanding.

Manfred Julius Müller, D-24939 Flensburg (Flensburg has about 90,000 inhabitants and is located on the German-Danish border).

 

Background and analysis:
In Germany wages have been falling since 1980. Why?
Germany: The brazen proclamation of skills shortage!
Globalization: the ignorance of the facts
The political and economic consequences of an brexit An analytical consideration from German view.
"We have to explain Europe better!"
When will the Dexit? (the withdrawal of Germany from the EU)
The capitalist Powers Act
Globalization: "One cannot produce that with us anymore!"
The fairy tale of the international division of labor
The international division of labor is counterproductive!
The fear of British Farmers before the Brexit!
The impact of globalization on developing countries
Brainwashing: "We want an open Europe!"
How much democracy can withstand the EU?
Should the EU become a political union, new problems arise!
Is there indeed a general market saturation?

 

Ist die Globalisierung Basis unseres Wohlstandes?
Und leben wir auf Kosten der anderen?

(Eingangsseite www.anti-globalisierung.de)

Impressum

© Manfred Julius Müller, Flensburg, Februar 2011, Nachtrag 2017


Current books by Manfred Julius Müller (unfortunately currently only available in German):
CAPITAL AND GLOBALIZATION - only Euro 13.50
THE CAPITAL and the world economic crises - only Euro 5.80
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OUT OF THE EU or persevere until the sinking? - only Euro 5,90
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Humanity knows no boundaries. Stupidity, but not too! - only Euro 6.80
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Manfred Julius Müller has analyzed global economic processes for more than 30 years. He is the author of various books on the topics of globalization, capitalism and politics. Some texts by Manfred Julius Müller also found their way into textbooks or are used for teacher training.

The analyzes and texts by Manfred Julius Müller are non-partisan and independent!
They are not, as is often the case, sponsored by state institutions, global players, corporations, associations, political parties, trade unions, the EU or capital lobby!