Notes

From a business perspective, sweatshops are overwhelmingly lucrative since they capitalize on low-wage labor in developing countries and significantly reduce production costs." (Wong, Annabelle. "Two Faces of Economic) This affects the economy because the companies don't have to pay as much therefore improving their income. The companies use the people who can't find a job because they are in a third world developing country. "The vilified MNCs that have set up factories in developing nations have done so out of good business sense. By shifting production to an area where labor costs are least expensive, the cost savings can be passed on to consumers." (Spath, Stefen. "The virtues of sweatshops.") The companies that are using sweatshops are going to third world countries, and they are using the people who are poor and in poverty and preying on their vulnerabilities. "The problem is that improved safety would raise the price of clothing, according to Rockowitz, who heads Li & Fung Limited, a sourcing company that hooks up retailers like Macy’s and Kohl’s with suppliers in low-wage countries like Bangladesh. “So far,” he said, “consumers have just not been willing to accept higher costs.”(Wilson, David. "Who Really Benefits") The consumers are controlling the wages and the safety conditions by buying their clothes or not buying their clothes until they make the wages better and the safety conditions better.