OK Jamaica shoes – Ethiopia
A TNC is also known as a transnational corporation. These companies transcend national borders e.g. Mc Donald’s or Pizza Hut. Ok Jamaica Shoes is also a good example of a TNC as it currently supplies shoes to over 40 retailers in Ethiopia, as well as many more in Kenya, Tanzania Djibouti and Canada. OK Jamaica shoes are also in the process of expanding its export base to the European, American and Canadian markets.
A currently expanding TNC in Ethiopia like OK Jamaica shoes are only able to become such a large business so quickly because of how much money their making, although the prices of the shoes they sell to countries such as America for, are relatively cheap (about 8 pounds whilst those Countries sell it for around 100 pounds) they are able to get their profit by underpaying workers and putting their employees in a bad work environment. Furthermore, a supervisor in an OK Jamaica factory when being interviewed told his interviewers that the company is not able to ask for more money (so they can pay their workers more )from these retail companies as they threaten to go to a cheaper company in China. In many factories the employers are often more interested in hiring a worker cheaply rather hiring workers with qualifications. Thus they employed many women and children, who could be hired for lower wages than men. These low-paid employees work for as long as 16 hours a day; they are subjected to pressure and sometimes even physical punishments. In simple terms, factory workers work long hours, with no breaks, poor food, poor pay and little physical safety. Factory workers today these bad conditions because that is the best work that they can get at that time in that country. In this sort of industry, the only thing that matters is cost. The factory that can turn the product out at the lowest cost will be able to get contracts and market share. Because of this,...
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