How you structure the follow is up to you. Instructions:• Compare and contrast the following two case studies.• Discuss and comment upon the different attitudes the two companies had towards the idea of offshoring.• Evaluate the plans of action both companies took and argue for which company you think was the most ethical and/or ‘smart.’• What important points do you feel that future businesses can learn from these case studies?• Be sure to use at least two economic theories along the way for support. Perhaps you will want to use contrasting theories, such as Shareholder vs Stakeholder, or perhaps Social Darwinism vs. Ethic of Care.• Since this is an essay, try to have a central point that you are developing along the way, which will be important to your conclusion. The second one involves Malden Mills, a textile company(fabrics and clothing) in Lawrence, Massachusetts, near the cityof Boston in the USA. In the 80s, other textile companies in theregion had closed their Boston area factories to relocate to wherelabor was cheaper, often to Asia and Mexico, but Malden Millsdecided to stay. During the 80s they survived near-bankruptcyand decided to gamble and re-focus their production on high-end, high-priced specialty fabrics, especially Polartec, alightweight, fleecy material that turned out to be very popularwith brands like L. L. Bean and Ralph Lauren. The gamble paidoff and the Polartec profits rose from $5 million in 1982 to $200million in 1995.The company was quite strong and successful when a crisis hitin December of 1995–an accidental industrial fire completelydestroyed the factory. Everyone in the industry expected MaldenMills to do the only 'smart' thing at this point and take the $100million insurance money and reopen in a developing countrywhere labor would be cheaper. But they shocked everyone byannouncing that they would rebuild in Lawrence, and also theywould pay full salaries to their 3,000 employees for 3 monthsand continued health insurance for 6 months.Rebuilding in Lawrence ended up costing the company around$450 million and keeping the laid-off workers on salary andhealth benefits cost $20 million more, but the company gained anational reputation as a business 'with a heart' and enjoyed avery positive boost to their brand. They reopened in 1996, andmost of the original employees were hired back, as their jobswere held for them.As the years went by, however, thetimes. Perhaps due to the amount of money they spent onrebuilding, or perhaps it was mostly due to changes in themarketplace, but Malden Mills had to declare bankruptcy in2007. The family that had run the plant for generations wasforced out as another company took over, changed the name toPolartec, reduced the staff to 800, and moved most of theoperations to other countries.companyfelluponhard The first one we discussed in class, General Motors (GM),which decided to offshore production from the USA to Mexico.When GM began this in the late 70s, it was a relatively new ideafor a major American producer, and was highly controversial,but the trend has grown over the decades, and nowadays othermajor car companies, including European and Asian giants likeBMW and Honda, have followed the same strategy to closeplants in their homelands and reopen where labor is muchcheaper and regulations more loose. In 1978, there were 80,000GM employees in the Flint, Michigan area, and today there arearound 7,000. As those plants closed, the consequences havebeen very destructive for the surrounding towns, whereunemployment skyrocketed (and with it crime, gangs anddrugs), and areas have become like ghost towns where peoplehave been evicted from their homes, and apartment buildingsand businesses have been abandoned. As GM first began thisoffshoring in the late 70s they were enjoying a 49% share of theAmerican car market, but changes in the market were showingthat they would soon be losing this high position. By the mid80's they were down to 40% and this downward trend hascontinued (not only for them but for other American carmanufacturers as well). Today, they stand at 15%.

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Malden mills Companies was most Smart than GM(General Motors). During the 80s they survived near…