International Manag Ment

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

Time and time again, there have been opposing views on just about every single possible topic one could fathom. From the most politically controversial topics of gun control and stem cell research to the more mundane transparent ones of brown or white rice and hat or no hat—it continues. Sweatshops and the controversy surrounding them is one that is unable to be put into simplistic terms, for sweatshops themselves are complex. The grand debate of opposing views in regards to sweatshops continues between two writers who both make convincing arguments as to why and how sweatshops should or should not be dealt with. In Sweat, Fire and Ethics, by Bob Jeffcott, he argues that more people ought to worry less about the outer layers of sweatshops and delve deeper into the real reason they exist and the unnecessariness of them. In contrast, Jeffrey D. Sachs writes of the urgent requirement of sweatshops needed during the industrialization time in a developing country, in his article of Bangladesh: On the Ladder of Development. The question is then asked: How do sweatshops positively and negatively affect people here in the United States of America and in other countries around the world?

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

Dexter Roberts and Pete Engardio in “Secrets, Lies, and Sweatshops,” writes about the various struggles that the United States has with production factories overseas. Wal-Mart claims they have rules for the sweatshops to follow but China still violates the labor laws by hiring consultants to give tips to sneak around auditors. The American people enjoy their everyday items at a low price, which Wal-Mart demands to the sweatshops. The sweatshops are struggling to provide these low price items to Wal-Mart and keep their working conditions humane. Roberts and Engardio explain in the article how companies that have overseas production are attempting to provide the managers and employees with skills to make the overtime required more effective.

As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.

With bringing your factories to foreign countries you get cheaper labor land and can avoid many taxes.

There are many views with the problem of utilizing sweatshops in developing economies. Many insist that utilizing sweatshops in developing economies composes exploitation. In certain circumstances, this may be true, but not all. It is an ongoing controversy of demolishing sweatshops and changing the laws of labor. Many anti-sweatshop activist supports the idea of demolishing sweatshops. Activist commonly focus on work conditions and low wages causing them to be ill – formed of the economy as a whole. Taking a deeper look into these developing countries, it is with out of doubt that these countries benefit from sweatshops. Sweatshops should not be demolished because the employees are benefited with income, their economy receives growth and

Ben Powell’s “In Defense of ‘Sweatshops’” article offers an uncommon point of view regarding the necessity of sweatshops. Powell knows that people know about sweatshops, but he offers another angle to the topic. The point he tries to get across is how sweatshops can actually be beneficial to the people in the third world countries, rather than them being a terrible thing. Throughout the article, he brought up some relatively good points, but not all he had to say was backed up with evidence. Therefore, Powell’s article was semi-effective.

Human effort and cost should be a critical part of your decision. Human effort to visit and work with suppliers overseas, the costs of airfare, hotel and food and the cost of time away from the office and family.

It is also important to note that quite a number of multinational corporations have in the past setup operations in developing nations in an attempt to make cost savings especially in terms of labor and production costs. With a growing

Throughout time, many things evolve based on current trends. The business world is no exception to evolution. In the world of business, the bottom line is key and wealthy figure heads are paid large sums to bring up profit margins and cut production costs. During the twentieth century, production costs have been cut by the means of outsourcing. Although outsourcing is financially beneficial to large businesses, it has detrimentally impacted the American economy through raises in the unemployment rate, lost countless tax dollars and compromised the integrity of products received.

I will first talk about the purpose of having operations done in another country. American companies can decide to move their companies overseas for a few reasons. One reason is that they can hire workers at low wages, for example, in China they can pay as little as 30 cents and hour whereas here they would have to pay employees minimum wage.1 Another reason is because the company would not have to pay employee benefits, such as vacation time sick days, and health insurance.1 A third reason would be that they would not have to follow safety and environmental regulations.1 The last reason would be that they would not have to pay foreign taxes

Implement extensive research to predict possibility of economical, cultural or financial complications in the outsourcing country. Make economical/political stability one of the factors in the evaluation process as well as tariffs, customs, and insurance.

3.)Assume the CEO of Harley has decided to set up new manufacturing facilities in both China and India. Which of the general environment conditions should be analyzed before Harley makes strategic investments in each country. And to get started there, should Harley set up wholly owned