Cambodia Essay, Research Paper

Cambodia is known for its war torn history as well as its factor in international business. By using Griffins framework, and reading the article A Bumpy Road to Reform out of the September 11. 2000 issue of Business Week it is easy to see why such large companies such as Nike, Target, Gap, JC Penny and Wal-Mart see interest in this war ravaged nation in need of export earnings and investment.

Griffins framework basically says that if a country is pulled more to one corner of the Dynamic Diamond then competition will develop. This is True in Cambodia s case. Factor Conditions in Cambodia which include wage rates, education and skill levels pull it more to this side of the diamond. Simply said, the people of Cambodia are not well educated and will work in these sweat shops to make $45 dollars a month Making it possible for the big companies to look elsewhere for workers.

The response that the U.S. has given is that it will increase the textile it imports from the country only if Cambodia will let foreign monitors inspect Cambodian garmet factories.. to see if they will improve the labor standards.

The response the U.S. has given to help Cambodia is one that will help to improve trade relations for the country, help increase cash flow to the country, and most of all help a nation in need of training better workers and better working conditions.

By helping Cambodia this way, by letting monitors see inside the factories, hopefully the wage rates and safety of workers will rise. If not we might see these companies move somewhere else.