Labor Practices and International Trade

Labor Practices and International Trade
Student’s Name
Institution
Labor practices and International Trade
Labor practices have been an issue of concern from as early as the 18th century when the shoemaking business was booming and the shoemakers made effort to have their working conditions improved by forming labor organizations. Although the fight for better working conditions has had some ups and downs, the enactment of the National Labor Relations Acts (NLRA) by the U.S Congress in 1935 can be regarded as a major milestone in the protection of workers’ rights (NLRB, n.d.). Globalization and international trade have led to the expansion and emergence of global corporations outside the international boundaries, which have set up manufacturing and production plants in countries where labor and raw materials can be acquired with ease, often termed as offshore manufacturing. Offshore manufacturing companies have often been accused of exploitation and absolute disregard of the workers' welfare, making the consideration of labor practices for a company with operations in a global environment vital.
Labor practices in another country should be considered in international trade because products manufactured in country may be consumed in several others. The international corporations may be tempted to engage in labor practices that merit to be regarded as unfair labor practices in a foreign jurisdiction whose citizens are vulnerable due to ineffective labor laws. Incorporating labor practices into international trade policies will help safeguard the vulnerable citizens in countries where international corporations often run to establish their manufacturing plants for cheap labor. In addition, the freedom of association is ingrained in international labor laws. Failure of an international corporation to take into consideration appropriate labor practices may lead them to engage in a practice that may be incompatible with the labor laws stipulated by the International Labor Organization (ILO) (Blackett, 2019). Furthermore, incidences that may be regarded as unfair labor practices may taint the company’s reputation and ethics in the global e...