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with fewer regulations concerning labor rights in order to produce products that are cheap with the aim of trying to remain competitive in the global market. Although cheap labor is one of the incentives that are making different companies to outsource their operations to Asian countries, there must be limits on how to use this labor. I was surprised that Nike kept stating that it was creating employment to poor countries while in reality; the firm was exploiting the local population and enhancing poverty in these regions. In addition, sweatshops were meant to ensure that money was distributed evenly to the laborers through high wages. On the contrary, the sweatshops were characterized by poor working conditions, low levels of environmental protection, and less attention to health and safety. Therefore, Nike Company was able to make immense profits on the expense of poor people in Indonesia, China, and Vietnam.
I have been persuaded that companies have not been making the lives of the locals who are working in sweatshops any easier. This is because with the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration or economies the level of competition in the local market has increased tremendously. Many multinational companies such as Wal-Mart have also been found to have violated the labor rights in an attempt to offer the customers with high quality goods at very low prices. This is an indication that companies are targeting areas with fewer regulations in order to exploit child labor and pay low wages despite overworking these subordinates.
I never thought that child labor still exists in the modern society. I thought that competition is healthy and it makes the company to be innovative. In addition, I thought that competition forces the companies to mechanize their operations and becomes more innovative. However, this session has enlightened me on the negative side of intense competition in
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