April 21, 2019 0 Comment

Moreover, another external factor will be globalization of trade. The globalization has resulted in the phenomenon of advanced countries searching for manufacturers from developing countries that are able to provide premium quality product at lowest cost. It has become a norm for relying on manufacturers from developing countries for massive production needs because the corporations always wish to cut their production costs for higher earnings. Besides, the reason that sweatshops still persist also include weak labor regulations in developing countries. Often in developing countries where the regulators are not strict, agents that do not own any responsibility of labor practises tend to arrange contracts for multinational or national firms that they have no idea about the working condition. At last, the corporations take advantage of the cheap wages and weak labour regulations to increase their profits.


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