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World Sociology

Employment, poverty and the global division of labour

  • 3 things to know
  • A2 Unit 3

Overview

International division of labour, export processing zone and informal economy.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Process

Why do critics object to export processing zones?

Key term

What is the case against low-wage export factories?

Key term

What drives child labour in poor countries?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is the international division of labour?

    Model answer

    It is the pattern by which different regions specialise in different parts of production, with design, finance and marketing in rich countries and assembly and raw materials elsewhere.

  2. 2

    What is an export processing zone?

    Model answer

    It is an area where firms producing for export are exempted from many taxes, tariffs and labour regulations in order to attract foreign investment.

  3. 3

    Why do critics object to export processing zones?

    Model answer

    Wages are low, unions are often obstructed, safety standards are weak, and the tax exemptions mean the host country captures little of the value created.

  4. 4

    What is the informal economy?

    Model answer

    It is the large body of paid work that is unregistered and untaxed, carried on without contracts, pensions or legal protection.

  5. 5

    Why does the informal economy matter to development?

    Model answer

    It employs a majority of workers in many poor countries, so most of the workforce is outside the reach of labour law, taxation and social protection.

  6. 6

    What is the case made in defence of low-wage export factories?

    Model answer

    Supporters argue that the work pays more than the local alternatives, brings women a cash income, and is the route earlier industrialisers took.

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