Assignment:
Russell Athetic case
1. Assume that you are an executive of a large U.S. multinational corporation planning to open new manufacturing plants in China and India to save on labor costs. 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? Once company decide to expand new factory in new place, there are couple factors that manager should concern. Government regulations would be first priority. It is necessary to know each country labour laws because some countries restrictions are tough. Those countries might require high standard of worker welfare and working conditions. It is obviously that MNCs must follow all the regulars in order to fit in each country.
Moreover, MNCs also need to concern in culture of the particular country. Company cannot ignore to find out the different elements of culture of the country. Most of Asian countries has high context culture which is opposite with United States. It is vital for company to develop trust to people in these 2 countries. Once the company outsourcing labor to developing countries especially in Asia, they would gain a benefit from lower labor cost. However, most of Asia countries has high context so the company could encounter with risk anytime if they break the country norms or social rules.
2. Do you think that sweatshops can be completely eliminated throughout the world in the near future? Provide an argument as to why you think this can or cannot be achieved. In my opinion, I am strongly believes sweatshops would not be abolished throughout the world in short time. It seem like developed countries concern this issue more than developing countries. These two countries have some conflict with themselves. Most of developed countries prefer to have a better world with fairness but most developing countries focus on overall country production.