The role of labor productivity

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Is the role of labor productivity more important than low wages in location decisions? Explain and use an example.Change Question

 

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The role of labor productivity is important when it comes to location decisions as it helps employers determine the cost-effectiveness of a particular location versus other potential sites. Labor productivity refers to an employee’s output level per hour worked and can be measured by taking into account both inputs (such as direct labor costs) and outputs (final goods or services). High levels of labor productivity mean that employees are able to produce more for less, thus saving companies money in terms of wages paid out. Low wages alone do not necessarily guarantee high levels of labor productivity; rather, other factors such as the availability of training, quality management systems, good working conditions and incentives also need to be taken into account in order for an employer to maximize their return on investment (Lemus et al., 2020).

An example of how labor productivity impacts location decisions can be seen in Amazon’s decision to open a new warehouse facility in Bessemer, Alabama where they are able to take advantage of lower tax rates than elsewhere while simultaneously reducing their overall operating costs due to the state having one of the highest average industrial production worker hourly earnings in the nation (Kruzel2020). By shifting operations away from higher wage areas like California and Washington DC, Amazon has been able to increase its profits significantly due mainly to increased efficiency stemming from workers at this site being able to produce more merchandise with fewer hours when compared against other locations within their network (Stripling2020).

In conclusion, although low wages may provide a business with immediate savings when selecting a particular location for operations – this should not solely define what makes one region better than another. Employers should assess all available options before making any commitments and look beyond just wage levels at factors such as infrastructure capabilities; access to potential customers/suppliers; incentive programs offered by local government agencies; union presence along with labor laws applicable across multiple jurisdictions etc.– all these elements combined will determine which site offers best value for money over period of time.

Firstly, Vittola argues after a war, it is the responsibility of the leader to judge what to do with the enemy (Begby et al (2006b), Page 332).. Again, proportionality is emphasised. For example, the Versailles treaty imposed after the First World War is questionably too harsh, as it was not all Germany’s fault for the war. This is supported by Frowe, who expresses two views in jus post bellum: Minimalism and Maximalism, which are very differing views. Minimalists suggest a more lenient approach while maximalist, supporting the above example, provides a harsher approach, punishing the enemy both economically and politically (Frowe (2010), Page 208). At the last instance, however, the aim of war is to establish peace security, so whatever needs to be done can be morally justified, if it follows the rules of jus ad bellum.
In conclusion, just war theory is very contestable and can argue in different ways. However, the establishment of a just peace is crucial, making all war type situation to have different ways of approaching (Frowe (2010), Page 227). Nevertheless, the just war theory comprises of jus ad bellum, jus in bello and jus post bellum, and it can be either morally controversial or justifiable depending on the proportionality of the circumstance. Therefore, there cannot be one definitive theory of the just war but only a theoretical guide to show how wars should be fought, showing normativity in its account, which answers the question to what a just war theory is.

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