Essay about International Manag Ment

4127 Words Dec 7th, 2012 17 Pages
1. Assume that you are executive of a large U.S. multinational cooperation planning to open a new manufacturing plants in China and India to save on labor cost. What factors should you consider when making your decision? Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?

As an executive of a large U.S. multinational corporation planning to open a new manufacturing plants in China and India to save on labor cost. There are a few factors that must consider when making the decision. The factors are including the environment business of the both country.
First factor that must be consider is regulations and laws of the country. It is a very
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While in US, a typical corporation is subject to various regulations and laws such as wage law, labor law, safety and sanitation requirement, and trade union organizing provisions, in some developing country these laws are soft and rudimentary, allowing a large corporation to derive significant cost benefit from outsourcing. Moreover, many developing countries like India, China, Vietnam, Pakistan and Bangladesh encourage the outsourcing of work from the developed worlds to factories within their borders as a source of employment from lack of jobs in their country.
However, in spite of the obvious positive facts of creating new jobs in the hosting country, the large multinational corporations very often have been criticized for violating the rights of the workers, creating unbearable working conditions, and increasing workloads while cutting compensations. They have been attacked for creating a so-called “ sweatshop “ environment for their employees.
Besides that, from a economic perspectives, many now argue that without sweatshop developing countries might not be able to compete with industrialized countries and achieve export growth.
2. Do you thinks that sweatshops can be completely eliminated throughout the world in the new future? Provide an argument as to why you think this can or cannot be achieved.

In my argument, the issues of sweatshop can be completely eliminated throughout the worlds in the new future is definitely wrong. In my opinion if the…

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