APPENDIX B ~ DRIVING FORCES FOR GLOBALIZATION ~

(Updated 11/1/08)

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[A]~Developing World as a Whole, [B]~Latin America, [C]~Asia, [D]~Africa

Table (B-1) ~ Average Hourly Labor Costs for 1990
Table (B-2) ~ Relative Labor Costs Among Major Auto-Producing Nations in dollars per hour (around 2004).
Table (B-3) ~ Productivity, Wages and Unit Labor Costs Relative to the US, Total Manufacturing, 1990.
Table (B-4) ~ Some Gross National Incomes per capita in 2000 (US dollars/ year)
Table (B-5) ~ Korean Average Monthly Wage for Manufacturing Employees

Table (B-1) ~ Average Hourly Labor Costs for 1990 (from a chart) (Institute of German Industries data) (92R1)

Country

Wages
(DM)

Total
(DM)

Total
($)

Germany

20

38

23.6

Italy

14

30

18.6

Japan

20

26

16.1

France

13.5

25.5

15.8

Britain

17

25

15.5

US

17

24

14.9

Spain

13

22

13.6

Greece

6

10

6.2

Portugal

4

7

4.3

S. Korea

4.5

6.5

4.0

Taiwan

5

6

3.7

Singapore

3.5

6

3.7

Brazil

3

5

3.1

Turkey

1.5

3.5

2.2

Mexico

2

3

1.9

Table (B-2) ~ Relative labor costs among major auto-producing nations, in dollars per hour(Source: U.S. office of Trade and Economic Analysis) (04S1)

Germany

$33.00

U. S.

$22.50

France

$22.10

Japan

$20.20

Canada

$19.40

U. K.

$18.60

S. Korea

$ 8.40

Taiwan

$ 5.20

Mexico

$ 2.70

China

$ 0.90

Table (B-3) ~ Productivity, Wages, and Unit Labor Costs relative to the US, total Manufacturing, 1990~ (96G1) (from a chart)

Country

Product-
ivity

Wages

Unit Labor
Costs

India

0.05

0.05

1.05

Philippines

0.07

0.08

1.1

Malaysia

0.10

0.10

1.0

Mexico

0.25

0.20

0.7

S. Korea

0.50

0.4

0.7

Japan

0.85

1.0

1.15

US

1.00

1.0

1.00

Comments: Unit Labor Costs = Wages/ Productivity.

Table (B-4) ~ Some Gross National Incomes per capita in 2000 (US dollars/ year)

Bhutan

590

Nepal

240

Cambodia

260

Viet Nam

390

Thailand

2000

Lao PDR

290

Sri Lanka

850

Bangladesh

370

Maldives

1960

Tajikistan

180

India

450

Cuba* #

480

Source: United Nations, World Urbanization Prospects: The 1999 Revision (1999)
# Gershon Fishbein, Pittsburgh Post Gazette (1/12/03).

[A] ~ Developing World as a Whole ~
Median per-capita income is under $2/ day (under $730/ year) (Ref.11, 25 and 26 of Ref.(00S1)).

[B] ~ Latin America ~

[B1] ~ Latin America ~ Mexico ~

Maquiladoras in Major Municipal Areas of Mexico's Part of the Rio Grande Basin (02K1)

Area

Year

Plants

Employees

Year

Plants

Employees

Juarez

1980

121

42,412

2000

312

255,740

Cd. Chihuahua

1980

19

4,415

2000

85

52,722

Matamoros

1980

50

15,314

2000

38

14,475

Piedras Negras

1993

42

9,122

2000

38

14,475

Cd. Acuna

1992

50

18,615

2000

57

32,289

Nuevo Laredo

1993

54

16,418

2000

55

22,050

Reynosa

1993

78

34,258

2000

122

64,877

TOTALS

- - -

414

140,554

- - -

*707

456,628

* There are now almost 3000 maquiladoras in Mexico, employing close to 1 million people (02K1).

[C] ~ Asia ~

[C1] ~ Asia ~ China ~

[C2] ~ Asia ~ India ~

[C3] Asia ~ Indonesia ~

[C4] ~ Asia ~ Japan ~
The market rate for unskilled labor is $25/ hour (02W1).

[C5] ~ Asia ~ Korea (South) ~

Table (B-5) ~ Korean Average Monthly Wage for Manufacturing Employees (dollars) (Bank of Korea data)

YEAR

1987

1989

1991

1993

1995

1996

WAGES

400

750

1000

1100

1500

700

A survey by the Korea Traders Association of 460 foreign buying offices in South Korea found that two-thirds plan, within two years, to change their partners or shift their bases to China and Southeast Asian Countries, which can provide less expensive goods (Wall Street Journal (9/26/91)).

[C6] ~ Asia ~ Korea (North) ~
Pay of workers averages about $45/ month. (Damon Darlin, Wall Street Journal (5/12/92)).

[C7] ~ Asia ~ Malaysia ~
The market rate for unskilled labor is $2.50 / hour (02W1).

[C8] ~ Asia ~ Singapore ~
The market rate for unskilled labor is $5.00/ hour (02W1).

[C9] ~ Asia ~ Vietnam ~

[D] ~ Africa ~
[D1] ~ Africa ~ Madagascar ~

APPENDIX B ~ REFERENCES ~

92L1 Karen Lissakers, Wall Street Journal (11/19/92).
92R1 Terence Roth, Wall Street Journal (1/29/92).
93B1 Marcus W. Brauchli, Wall Street Journal (4/7/93).
94C1 Steve Creedy, "India Becoming Software Mecca", Pittsburgh Post Gazette (12/7/94).
96G1 Stephen S. Golub, "America-Firsters Have It Backward", Wall Street Journal (1/16/96).
97B1 Medea Benjamin, letter to the editor in Wall Street Journal (6/4/97).
99C1 Center for Immigration Studies, and US Department of Labor, Bureau of Labor Statistics, Office of Productivity and Technology, "Five Years After NAFTA, Rhetoric and Reality of Mexican Immigration in the 21st Century" (May 1999).
00S1 J. Joseph Speidel, "Environment and Health: 1. Population, Consumption and Human Health", Canadian Medical Association Journal, 163(5) (9/5/00) pp. 551-556.
01O1 Oxfam, "Bitter coffee: how the poor are paying for the slump in coffee prices", Oxford, UK (2001).
02I1 Evelyn Iritani, Marla Dickerson, "China to be world's factory", New York Times, (appeared in Pittsburgh Post Gazette on 11/24/02).
02K1 Mary E. Kelly, "Water Management in the Bi-national Texas/ Mexico Rio Grande/ Rio Bravo Basin", in Karen Krchnak, editor, Human Population and Freshwater Resources: U.S. Cases and International Perspective, Yale University, New Haven (2002) 177 pp.
02W1 Peter Wonacott, Wall Street Journal (3/14/02).
03F1 Gershon Fishbein, "Cubans give health system mixed reviews", Pittsburgh Post Gazette (1/12/03).
03K1 Mitra Kalita, "India's new cast system: manhole covers". Pittsburgh Post Gazette (3/23/03) (from Newsday).
03M1 Joel Millman, David Luhnow, "Decade After NAFTA, Prospects for Mexico Seem to be Dimming", Wall Street Journal (4/21/03).
03U1 (Unknown) "China to Speed Up Urbanization, Resolve Farm Issues", Push newsfeed (1/8/03).
03V1 Gonzalo Vina, Tom Mudd, "Call Centers Migrate to India, and North of England Loses Jobs", Wall Street Journal (11/5/03).
03W1 Peter Wonacott, "In Rural China, Health Care Grows Expensive, Elusive", Wall Street Journal (5/19/03).
04C1 Leslie T. Chang, "At 18, Min Finds a Path to Success In Migration Wave", Wall Street Journal (11/8/04).
04M1 Dan Morse, "In North Carolina, Furniture Makers Try to Stay Alive", Wall Street Journal (2/20/04).
04S1 Norihiko Shirouzu, "Big Three's Outsourcing Plan: Make Parts Suppliers Do It", Wall Street Journal (6/10/04) p. A1.

07M1 Vladimir Masch, "A Radical Plan to Manage Globalization," BusinessWeek.com (2/14/07) (Visited 2/16/07).

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