LABOR STANDARDS Trade unions claim globalization reduces labor’s bargaining power and lowers global labor standards when international firms are permitted to continually move to nations with lower labor standards. One place to test this assertion is in developing nations’ export-processing zanes (EPZs)-special areas in which companies engage in tariff-free importing and exporting. More than 850 EPZs employ 27 million people worldwide. Yet a study by the International Labor Organization (www.ilo.org), hardly a pro-business group, fo und no evidence to support the claim that nations with a strong union presence suffered any loss of investment in their EPZs. In fact, another study by the World Bank found that the higher occupational safety and health conditions an EPZ had in place, the greater foreign investment it attracted.21 The evidence fails to support critics’ allegations that economic openness and foreign investment contribute to lower labor standards.
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