U.S companies that move factories to undeveloped nations barely pay Research Paper

U.S companies that move factories to undeveloped nations barely pay employees enough to live on. Is it unethical to pay cheap wages or are companies doing those workers a favor - Research Paper Example Furthermore, production plants in those countries work on a contractual basis with American corporations (Rock 26). On the other hand, most Americans are not aware that their desire for shopping drives an extremely controversial business. The availability of cheap unskilled labor within these countries prompts most American corporations to establish their production facilities within their boundaries. However, the controversies surrounding these corporations drive the ethical and moral questions posed in relation to their operations within these countries. American clothing and electronic companies have continuously built production lines abroad from time immemorial. Harsh working conditions, poor pay and unfair commanding managers have characterized these production lines located in under-developed countries. These corporations have additionally employed the services of young, unauthorized minors in their factories. Recently, many multinational corporations from the United States have resulted to construction of these factories in undeveloped countries as a strategic move to expand their businesses (Gupta n.d). Most sweatshops operational in the world currently are in the Asian continent. Looking at the issue of Sweatshops from a purely commercial point of view, it is a very profitable industry because they benefit from low-wage labor in third world nations and considerably decrease manufacturing costs. Numerous footwear and textile companies from the United States have been heavily associated with offshore operations in underdeveloped countries. Big brand names such as GAP, Levis and Nike have all been heavily associated with countless contraventions of basic requirements for the recommended reasonable working conditions in their manufacturing plants (Dickson 48). All the three named companies’ client bases and main offices are situated in the United States while the sections involved in the production of their goods are situated in Asia.