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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.
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"The
international division of labor (globalization) is
in principle a highly unproductive undertaking!
It only becomes lucrative through the exploitation
of workers."
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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 equality of opportunity - even when it comes to
forming opinions. While the capital (corporations,
speculators, lobbyists, media, governments) can afford the
best translators, I have to settle for a simple language
program for financial reasons. I hope, however, that the
text is nevertheless reasonably understandable and that no
major mistakes have occurred. Thank you for your
understanding.
Manfred
Julius Müller, 24939 Flensburg (Flensburg has approx.
90,000 inhabitants and lies on the German-Danish
border)
Background
& Analysis:
A
list of the currently available translations into English
can be found here.
Unpopular
truths from Germany. The capitalist world by no means
functions in the way that the human being is brainwashed.
The hottest political taboo topics. The tough fight against
false doctrines and prejudices.
Background
and analysis:
In
Germany wages have been falling since 1980.
Why?
Causes
and consequences of global economic
crisis
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)
Impressum
©
Manfred Julius Müller, Flensburg, Februar 2011,
Nachtrag 2017
Current
books by Manfred Julius Müller (unfortunately currently
only available in German):
CAPITAL
AND GLOBALIZATION
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THE
CAPITAL and the world economic
crises
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THE
CAPITAL and the welfare
state
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OUT
OF THE EU or persevere until the
sinking?
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The
free trade delusion
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Humanity
knows no boundaries. Stupidity, but not
too!
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Only
Fairtrade! The capitalist Reformation! 35 theses for a
fairer world!
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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!
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