1. Chapter 2 Work and Trade: The Global Assembly Line

2. © 2013 Pearson Education, Inc. All rights reserved. The Division of Labor Adam Smith: Efficiency –Division of labor Émile Durkheim: Solidarity –Mechanical solidarity Max Weber: Work Ethic –Protestant work ethic

3. © 2013 Pearson Education, Inc. All rights reserved. The Division of Labor Karl Marx: Alienation –Modern industrial workers in capitalist economies experienced profound alienation The New International Division of Labor –Deindustrialization –Export-processing zones –Offshoring

4. © 2013 Pearson Education, Inc. All rights reserved. The New Frontier: From Hudson’s Bay to Land’s End Occasional Help Wanted: From Bracero to NAFTA –Bracero program Working the Line: Life on La Frontera Pushed to the Wall: Wal-Mart and the “Big Boxes” –“Buy American”

5. © 2013 Pearson Education, Inc. All rights reserved. Table 2.1 Hourly Compensation Costs for Production Workers*

6. © 2013 Pearson Education, Inc. All rights reserved. Made by Small Hands Mills and Mines –Child labor and the struggle to eliminate it have a long history Hooked by the World Economy –International Labour Organization (ILO) –In Lahore, Pakistan, child labor is driven by both domestic and external pressures

7. © 2013 Pearson Education, Inc. All rights reserved. Table 2.2 Children in the Worst Forms of Child Labor

8. © 2013 Pearson Education, Inc. All rights reserved. A Trade Free-for-All David Ricardo: Comparative Advantage Chain of Production around the World –Toys –Electronics –Textiles –Food

9. © 2013 Pearson Education, Inc. All rights reserved. Ordering the World Market The International Monetary Fund –Structural adjustment –Privatization The World Bank From GATT to the WTO –Tariffs

10. Ordering the World Market –Washington Consensus –General Agreement on Trade and Tariffs (GATT) –World Trade Organization (WTO) –Asian-Pacific Economic Cooperation (APEC) conference © 2013 Pearson Education, Inc. All rights reserved.

11. Trade That Is Fair for All Trade is a force for change Trade could be used as a force for positive change Global capitalism hasn’t been pretty Jeffrey Sachs embraces free market economics; is a champion of globalization –Argues for enlightened globalization