Cheap Labor Essay

In her book, Labor and Legality: An Ethnography of a Mexican Immigrant Network, Ruth Gomberg-Muñoz describes the lives of ten busboys, she referrs to as the Lions, living and working in the Chicago area. Gomberg-Muñoz provides an insight into the lives of these undocumented Mexican workers. They share their stories of crossing the border, the affects of their absence on family back in Mexico, and the daily struggles of living in a country without the benefits of citizenship. The Lions, as well as other undocumented Mexicans, have to face Americans stereotypes every day. Probably the biggest stereotype the Lions contend with is the belief that all Mexicans are hard workers.

In the third world countries such as Vietnam, China, South Korea and Taiwan, we are provided with an example of cheap labour. These corporations could now achieve the benefit of the United States consumer market8, while keeping their costs extremely low in offshore production. The working conditions in the United States were poor for centuries, often little to nothing was done unless a tragedy occurred to influence worker rights by the public. This was the issue during the Industrial Revolution and in the late 20th century. In the United states, improvements have been made and these conditions have disappeared, with the privilege in some agricultural areas. Companies from the United States have moved a considerable amount of their factories

“Women sewing NBA jerseys make 24 cents per garment – an item that will eventually sell for $140 or more”(Brandon Gaille). Our most popular American sports uniforms are mainly produced by Nike, who possess a market cap of $ 90 billion. The question, therefore, becomes, why do immigrant workers from developing countries migrate to the United States to work for brand-name companies, when they don’t receive equitable wages and perform in inhumane working conditions? In,”Who Makes the Clothes We Wear”, Jesse Jackson discusses these conditions and unjust treatment of immigrants. Jackson highlights the extreme manual labor hours, inequitable pay, and rash mistreatment of immigrant workers inside name brand sweatshops. He also provides nationwide examples of unjust labor environments in order to think about the disturbing ethics behind name brand clothing production. When examining why workers endure such horrific environments, it is clear that most originate from developing countries. Due to immigrants attempt to obtain a better quality of life, receive any type of wage that they can acquire in the United States, and their constant struggle with the language barrier which affects job opportunities and daily interactions; immigrant workers endure the mistreatment of name brand companies because they seek the American Dream.

Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

The trade policies in NorthAmerica are quite liberal when compared to the other areas of operation such as LatinAmerica and Europe.

The elimination of import tariffs on Vietnamese Footwear will not only benefit Nike, but the American economic interest as well. “The United States is the world’s largest footwear market valued at $71.7

Consumers are becoming increasingly aware of the vast range of goods produced overseas and the often horrifying conditions under which workers labored to produce them. College students, activists, and certain scholars were quick to condemn “Sweatshops” and the multinational companies (MNC’s) that used them. However, this initial moral condemnation was based more on a natural sense of horror than moral reasoning, and critics often demonstrated a lack of sensitivity to both the underlying economic conditions that gave rise to the sweatshop phenomenon and to the beneficial consequences of sweatshops for both their employees and the broader economies in which they functioned. As a result, many economists quickly leapt to the

This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study. It illustrates Nike’s part in the sweatshop scandal and it also takes a look at the ethical issues that surround this touchy subject. This paper

Capitalism was the sole purpose for being the cause of an exponential use of slaves in all aspects of production. Notably, it involved an economic system whose basis originates from private ownership of all the means of production as well as the production of goods and services majorly meant for profit. With characteristics such as accumulation of capital, labor, private property ownership, and competitive market. Therefore, there was a great need for means of production hence slavery. However, there is a close relationship between free and slave labor as used in production. The paper uses “Capitalism and Slavery” (William, 1961) as a primary source material to compare the profitability of free labor and slave labor through an in-depth discussion of the role the African slavery played in the development of capitalism in the New World. Free labor and slave labor both have profits in the production process and would be applied differently at various places. For instance, slave labor was profitable in activities in which little skills and versatility in production process were required. It is worth noting that, the use of slave labor to cultivate a fresh soil is more profitable than the use of free men in the cultivation of an exhausted land. However, the use of slave labor was the option at the earlier stages of development of colonies, although slaved labor was unskillful, given reluctantly, and lacks versatility (Eltis, 2000). Moreover, use of slave labor were not moral but

Nike hold foreign factories to: those prevailing in that country or those prevailing in the United States?

Nike is one of the most popular and successful footwear brands, and there are many manufacturing factories in different countries. In this case, it talks about Nike’s international labor practice between1980s to 1990s. At the beginning of the case, it mentions Nike started to attract teenagers’ attentions in 1970s, besides that, Nike’s revenue reached the first highest peak in 1980s by increasing not only the footwear styles but also the celebrity endorsements. With growing the global market of Nike, more and more independent factories were built in different countries, especially in some lower labor cost cities. Saving cost strategies of Nike are undeniable effective and can increase the revenue rapidly. The major strategy is to outsource all manufacturing for shaving the cost so that the marketing would have an enough capital to build unique and positive social media. For example, since the labor cost in U.S. is generally higher than most Asian countries, companies will try to set up or contract with some independent manufacturing in Asia. It can save the cost and help the company’s revenue, but Nike did not treat international labors fairly and well. There are many evidences from the case can reveal Nike’s poor labor practices, and the negative image of Nike’s international labor practice finally influenced the whole footwear market and even Media.

When Nike was founded technological advancement in communication was still very primitive. Nike will outsource shoe production with Japanese companies until the oil crisis of 1970 and the new labor which consequences lead to an increase in production cost. As a

According to Ian Maitland’s The Great Non-Debate over International Sweatshops, there is a large misconception that sweatshops set up by large corporations are a negative force on developing countries and its citizens. This perception is derived from journalists’ claims that corporations underpay their outsourced workers in order to maximize company profit. Additionally, another claim made by these journalists is that the wages received by these workers are below the necessary “living wages” needed in order to survive with dignity. Maitland refutes these claims by focusing on reports of labor conditions at Nike’s Indonesian plant. The majority of these personal accounts present a more favorable perspective of corporations using international suppliers.

A positive impact of Nike’s offshoring strategy was that it allowed Nike to meet the growing market demand of its customers that resulted from global economic growth. It created convenience so customers in other parts of the world could easily acquire Nike’s products and increased customer satisfaction as a result. Moreover, their strategy had a positive impact on the quality of the products offered in various markets. Since labor in Asian markets was able and very willing to meet the quality standards of Nike’s demands in order to retain production contracts, they could meet the expectations that Nike customers presented (Locke, 2002).

Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. These are the pressures all apparel and shoe manufacturers face, and it is particularly challenging in the athletic show industry (Kynge, 2009). Adidas, Converse, Nike and Reebok have been outsourcing production of their shoes for in some cases nearly three decades. Nike was one of the leaders in this strategy, seeing to create a more efficient supply chain and also drop the labor and union costs of manufacturing in the U.S. (Boje, Khan, 2009). Adidas, Converse and Reebok have all followed Nike's lead, with Adidas benefitting from the fall-out generated when investigate reports showed Nike using child labor throughout Pakistan and Vietnam (Boje, Khan, 2009). All four of these companies share a common prioritization of manufacturing operations, yet none of them with the exception of Nike has a comprehensive Corporate Social Responsibility (CSR) program in place to ensure ethical compliance to global standards of outsourcing in their industry (Nike Investor Relations, 2012). The intent of this analysis is to compare and contrast the four companies mentioned and their outsourcing practices. Their reasons for choosing to outsource are very much the same; the industry is shrinking