Child Labor And Global Economy By Hugo Merino Essay
Multinational companies use developing countries to produce their products. In order to decrease production cost, global companies may decide to outsource their production to developing countries where in some cases, child labor is used.
Economic globalization, global governance and international laws are critical factors that affect the use of child labor in countries such as India, Bangladesh and China (Fors, 2014).
Using 5 different scholar articles, I am going to discus how the outcomes of global markets affect the utilization of children as workforce in developing countries using relationship between corporations, governance, globalization and international laws with child labor.
Relationship between corporations in global child labor
Seeking for maximizing the profits, companies take decisions that could affect the reputation and brand image (Nodoushani, 2013) such outsourcing the production to developing countries where child labor is involved in the process. Most of the companies that follow this strategy prioritize short term benefits knowing that if needed, in he future they could spend more money defending the company for using child labor. (Bhaskaran, Nathan, Phillips & Choragud, 2014)
In the garment industry, the total cost of outsourcing just represents between 5% to 10% of the total value (Bhaskaran, Nathan, Phillips & Choragud, 2014). Therefore, for multinational companies the outsourcing system…