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Beyond Sweatshops : Foreign Direct Investment and Globalization in Developing Countries

2004 - Brookings Institution Press

196 p.

place a floor under the treatment of workers around the world, contrasting a WTO-based system to enforce labor standards with ""voluntary"" arrangements, including corporate codes of conduct, certification organizations, and ""sweatshop free"" labeling. It explores the pros and cons of adding a ""living wage"" requirement to the ILOs core labor standards. The second part of the book presents data that significantly broadens our understanding of FDI. By analyzing the evidence from a variety of developing countriesÂ-in Asia, Latin America, and AfricaÂ-Moran demonstrates that most FDI goes to industrial sectors that employ trained workers who are not easily exploited. The flow of FDI to plants that produce electronics, auto parts, industrial equipment, chemicals, pharmaceuticals, and medical equipment, paying production workers two to five times more than what is found in lower-skilled operations, is twenty-five times the flow to garment, textile, and footwea [Publisher's text]