Globalization in RCA

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Jack Welch’s Statement, “Ideally, you’d have every plant you own on a barge.” has been a reference point in matters concerning migration of companies. The migration is usually attributed to the strengthening or imposing of limitations and constraints hindering the smooth operation and maximization of profit by the companies. The restriction may be regarding labor force both the working condition and the wages, whereby they move to greener pastures, where labor and the working conditions are not of primary concerns. This can be achieved by migrating from a developed country to a less development country where unemployment is so high such that people compromise on conditions and wages. This mobility enables the companies to maximize profits by moving to zones or countries that provide the lowest cost of production. For instance, moving from the US to Mexico guarantees cheap labor and lenient regulations by the government in an attempt to attract foreign direct investment. Movement by RCA to different geographical locations from 1930 onwards after the first world war was attributed to several factors. Firstly, organized labor, the initial choice of RCA to set up a plant in Camden, was to take advantage of the desperate workforce and within six years it had hit a peak of 10,000 workers. The primary criterion of employment was by selecting docile workers who were most unlikely to champion for their rights; this was achieved by employing mostly women, which constituted about 75% of the total workforce. But this strategy was discredited when the supposed docile workforce started forming unions and demanding for rights. This led to several strikes which were due to poor

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