Model Answer: More companies produce goods in the factories located in different countries other than the location of the head office. Advantages and disadvantages?

Many corporations locate their manufacturing operations in nations outside the countries where their headquarter are situated.
This
increasingly popular practice brings both benefits and drawbacks for the host countries and for the companies themselves. One of the primary incentives for companies to establish their manufacturing factories overseas is the affordability of the workforce. Since these establishments are almost placed in poorer nations, where the unemployment rate is high, and the wages are comparatively cheaper, businesses could capitalize on the cheap
labor
a social class comprising those who do manual labor or work for wages
labour
to reduce the overall production costs. From a grander scale, the employment opportunities that foreign firms offer could help to address unemployment, leaving host countries with less burden and people with increased living standard.
However
, child
labor
a social class comprising those who do manual labor or work for wages
labour
abuse could be a possible danger engendered by overseas manufacture. Being driven by profits, many are not reluctant to employ school-age children in their factories, and pay a meagre wage for them. By doing so, not only have companies apparently violated
labor
a social class comprising those who do manual labor or work for wages
labour
laws, but
also
they heavily exploit those who
instead
go to school to better their future prospects. Issues related payments and working conditions have
also
been raised around locating factories overseas. Many corporations allegedly skimp on wages, equipment and procedures that are supposed to guarantee a safe workplace. Workers,
as a result
, jeopardize their health or even their lives for a wage that could barely cover their basic necessities. In conclusion, despite the economic gains that companies themselves and workers receive from overseas factories, social issues around the mistreatment of
labor
a social class comprising those who do manual labor or work for wages
labour
highlight the need for companies to adjust to be more morally and socially responsible.

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