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Fairness, Consumer Consciousness and the Welfare of Less Developed Countries
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Giovanni Immordino
Veröffentlicht/Copyright:
29. Februar 2008
Activist organizations, interest groups, unions and media reveal information about labour standards. In a world where some consumers are not self-interested, the price of a product made by a multinational enterprise and the latter's location and production decisions depend on the difference in labour standards between developed and less developed countries. We study the effect of an increase in the fraction of informed inequity-averse consumers on the behaviour of multinational frms, on the equilibrium level of labour standards and on the welfare of workers in the less developed countries. An increase in activism deteriorates labour practices and decreases welfare.
Published Online: 2008-2-29
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Article
- The OECD's Harmful Tax Competition Initiative and the Tax Havens: From Bombshell to Damp Squib
- Monte Carlo Appraisals of Gravity Model Specifications
- Foreign Direct Investment Inward and Foreign Direct Investment Outward: Evidence from Panel Unit Root and Cointegration Tests with a Certain Number of Structural Changes
- The Impact of the Japanese Purchases of U.S. Treasuries on the Dollar/Yen Exchange Rate
- What's New in Our World?
- A Field Report on the Background and Processes of Privatization in Poland
- Social Dumping: The Debate on a Multilateral Social Clause
- Fairness, Consumer Consciousness and the Welfare of Less Developed Countries
