So what is the issue? What are multinational corporations?
Often multinational corporations employ the use of sweatshops in an effort to save money on cheap labor. Why would they do this you might ask? In our contemporary global economy it has become increasingly easier to buy and sell goods across national borders. We have more sophisticated methods of communication (Internet, telephone, cell phones, etc.) and quick modes of travel (airplanes) that enhance global communication. Therefore, corporations are finding it easier to buy and sell across national borders.
Recent trends in globalization of a world economy place an emphasis on cutting costs. Everyone wants to save money and make more money. Large corporations are predominantly located in large industrialized first world countries. And in these countries there are many economic restrictions on the corporation. For example, in the U.S. we have labor laws. These laws restrict many things, but few particular restrictions that we will focus on are restrictions on the amount of hours that people can work as well as a required minimum wage for workers. In the U.S. there are also laws to protect the rights and working conditions. That is, everyone deserves a safe environment to work. In addition, if workers are not satisfied, they have the right to file for complaints and demand change or better working conditions. All these things cost money to the corporation.
Therefore, one way to cut costs (because everyone wants to make more money) is to move labor and assembly to countries where such laws are not as strict or even non-existent.
So why is this bad? To find this answer we will explore 2 major corporations. Those two companies are Daewoosa (they make clothes for J.C. Penny) and Nike.
First we will look at