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The Outsourcing of jobs to circumvent US laws

1.) Many American companies manufacture products in other countries. Obviously, these companies must pay a cost for having to ship their completed goods to America for sale. What are the benefits that these companies are gaining by manufacturing overseas? Could manufacturing products in other countries reduce crime? Why?

2.) There are several common industrial practices that result in pollution or damage to other countries. Factories near the Mexican border can affect the air and water in the neighboring Mexican towns, and air pollution carried by the wind can literally circle the globe. Even more of an impact is felt by other countries when American companies build factories and processing plants in other countries, in order to avoid U.S. environmental and labor laws.

However, these practices are legal as far as American law goes. Answer the following questions keeping in mind the effects of your decision on jobs and the relevant industries:

Should these practices be changed? If yes, in what ways? If no, why?

Should the laws that govern these practices be changed? If yes, in what ways? If no, why?

Solution Preview

1.) Manufacturing overseas is all about savings and costs. Companies can pay workers in developing countries miniscule amounts of money or "living wages" that would be criminal and horrifying to people living in America. Under the guise that any wage provided to the poor in these countries is better than no wage at all these companies can justify paying 1 or 2 dollars a day in some instances to workers who make products that will sell for 100 times these amounts. Therefore, the benefits are monetary for the company.

The notion that paying a barely survivable earning wage to people in developing countries will reduce crime is nonsensical. Only ...

Solution Summary

This article focuses on companies that open factories overseas to circumvent U.S. environmental laws and whether this should be criminal.