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Ethical Sourcing in Retail Industries and the Problem of Sweat Shop Labor - Term Paper Example

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The term paper "Ethical Sourcing in Retail Industries and the Problem of Sweat Shop Labor" states that the fact that Free Trade and Fair Trade are not the same but can co-exist has been covered in the discourse. The Multinationals have for long exploited the workers of the underdeveloped countries…
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Ethical Sourcing in Retail Industries and the Problem of Sweat Shop Labor
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Download file to see previous pages Only with the consumer’s strong convictions can this movement be taken ahead of and for this communication of ethical issues including their damaging contribution to the environment needs to be highlighted.
The expansion of civilizations has been largely based on trading practices. Trade and Commerce have been drivers of extension of territorial forays in the past and, in modern days, with the royalty become defunct, even extinct in some cases, the role has been ably taken over by large companies, the Multinationals.
The twin objectives of war for territorial gains of the former kingdoms and the present day Multinational remain the same; expansion of markets to cater to larger populations and obtaining cheap labor for work from the new territories. Whereas formerly they made use of slave labor, often not caring about their survival, today they pay subsistence or even less for running their factories and establishments. All the high talk of Human Rights is meant for conference tables and for the populations of the victors and not the vanquished.
In the present context, the Multinational need to expand their markets and in search for consumers globally they are attracted by the huge populations of the developing or the under-developed world. They take advantage of offering them the goods that they have developed for their own affluent populations. However, where they face the possibility of lower sales due to the high prices they tend to manufacture their products locally for local sales at lower prices compared to their home markets.

The other angle to the story is that when they face competition from their rivals who are as big and as powerful, they need to lower prices to face such competition. The obvious way out is again to manufacture their products in the underdeveloped or developing markets at lesser cost and consequently be able to lower prices to their home markets.
With the demise of colonialism, democracy became the chosen form of governance, barring few dictatorships, in the whole world. ...Download file to see next pages Read More
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