The Benefits Of Sweatshops

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There are lots of sweatshops established in developing and less developed countries such as China and India. The main reason is the labor costs in those countries are much lower than developed countries. Due to the huge population in China and India, the wages will stay low in long term. Most of the workers are uneducated and unskilled, and they have to accept the low wages in order to pay for their daily necessities. The multinational companies like Apple Inc., IBM, H&M, Nike opened factories or outsourcing their products in China. These are unethical factories. A lot of people criticize the owners of these factories. However, all things are created by the demand. If sweatshops were useless, then they wouldn’t develop. Corporations want low …show more content…

Setting up sweatshop can help developing countries improve their technology level through the process of production. Developed countries usually transport modern technology such as machinery to their sweatshops in less developed areas, it gives the opportunities to sweatshop workers to access the advance technology. Also, they might use same or similar leadership styles and management methods as their home countries. For example: Laissez-Faire (To lacks direct supervision of employees and fails to provide regular feedback to those under his supervision), Autocratic (Allows managers to make decisions alone without the input of others. Managers possess total authority and impose their will on employees) and Participative (values the input of team members and peers, but the responsibility of making the final decision rests with the participative leader). The opening of sweatshops is also benefit the supply chain in developing areas. Sweatshops are usually used to produce variety components for technology and retail companies. In the production process, sweatshops have to purchase raw materials, transportations and installation services from local supply chains. For example, Apple’s sweatshops produces the components of iPhone and MacBook, the factories have to purchase steels and plastic from local firms. It will boost the revenue of the whole supply chain, and also help to increase …show more content…

The factors of production include land, labor, capital, and enterprise. Sweatshops must extract natural resources during the production process, which refers to one the factors of production: Land. Land not only including soil, but also means gas, river, oil, coal, and so on. Running a factory must involve all those things. When a country has plenty of factories, then the natural resources in that country will be overexploited. Moreover, heavy industrial will cause air pollution because they combusted large amount of coal. Usually factories occupy huge place, therefore company will cut down all the trees in the forest. For example, Shanghai has very serious smog problem. According to “Aqicn”, a real-time Index of air quality website for over 60 courtiers, the PM2.5 index in Shanghai is between 100 to 169in the last two

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