11/13/13 “Race to the Bottom” The game we played in class represents a global process called the “race to the bottom.” How would you explain what the “race to the bottom” is? On desk: Transnational Capital Auction packets

11/13/13 Econ. Agenda 1.What is the race to the bottom? (class notes) 2.How does the race to the bottom affect us? (group activity) HW: None

11/13/13Class Notes – Race to the Bottom “Race to the bottom” Companies/countries compete with each other by cutting wages and living standards for workers. Companies will move the production of goods to the place where: the wages are lowest taxes are lowest workers have the fewest rights the least amount of govt. regulations exist They are “racing to the bottom” of the world!

11/13/13 Transnational or multinational corporation: Company that has operations in more than one country Exploitation: to take unfair advantage of Example: Brandon is poor & desperate, so Tania exploits him by making Brandon do her senior research paper for only $5. Outsourcing: sending jobs outside of the country o “If you can find someone else to work cheaper, give them the job!” o Workers don’t believe they are being exploited because they are getting paid more than they were before!

Which job would you rather have? Farmer Work 6am to 6pm Paid.20 cents per pound of corn Yearly income: $1,000 Factory Worker Work 7am to 6pm Paid $3.00 per day Yearly income: $1,095

Class Notes Are sweatshops good for the world? Low Development Countries o Become middle/high development if they can produce goods & give population income o Transnational corporations provide jobs & pay more than the local factories “Anything is better than nothing.” …..right??

How does the race to the bottom affect us? Each group crafts a statement to the world about how the race to the bottom affects them: 1.Workers in third-world countries 2.First-world companies 3.The environment 4.Leaders of third-world countries 5.First-world workers 6.First-world consumers

How does the race to the bottom affect us? Workers in third-world countries

How does the race to the bottom affect us? First-world companies:

How does the race to the bottom affect us? The Environment:

How does the race to the bottom affect us? Leaders of third-world countries:

How does the race to the bottom affect us? First-world workers:

How does the race to the bottom affect us? First-world consumers:

Is it our responsibility to do something about the race to the bottom? Why or why not?