Question

In: Operations Management

What is the responsibility of Western firms whose manufacturing takes place in countries like Vietnam, Ethiopia,...

What is the responsibility of Western firms whose manufacturing takes place in countries like Vietnam, Ethiopia, or Bangladesh. How should that be sustainable?

Minimum 400 words

Solutions

Expert Solution

Outsourcing is the process or strategy by which many organisations contracts and sells out their major functions like manufacturing or production to specialised or efficient service providers who would then ultimately become valued business partners for the companies and business.

The major reason behind outsourcing was basically because of the emergence of more and more developed countries and the way they are conducting their business. As the business and the ideas to promote and make the business go stronger increased, the less important areas of business that only required manpower and no strategic or logical thinking like production, manufacturing or packaging related services and functions tends to become outsourced. Bigger and better western countries like America, UK, Canada, Europe etc tends to outsource their businesses to smaller and under developed  countries like India, Bangladesh, Vietnam, Ethiopia etc. These companies tends to outsource to focus more on important and relevant areas of the company. This outsourcing is a beneficial way for the company to grow at a faster and cost effective as focus could be put into more important functions. On the other hand the businesses and the countries who are being assigned with these work gets money, resources, development, employment opportunities, growth, technology boost and other economical benefits which is a good and healthier point for the economical and sustainable growth of the world. But, every country or company outsourcing their work also have to understand and take responsibility of the ethical code of conduct and ethical trade and labour practices to make sure the world economy and difference shouldn’t make anyone feel harm or discriminated against one another.

  1. Labour Treatment: The first important responsibility the western countries have is the treatment and how you are making the labour force work in smaller countries. You have to make sure to treat people right to get your work done. Don’t treat them like they are just workers and doing your non important work, instead treat them with respect they deserve, the skills and also engage with sustainable and ethical supply chain and outsourcing practices to make sure every manufacturing unit is safe for work and supports a healthy environment for work.
  2. Labour Wages: Also, make sure every law and order regarding the equality and equity wages and salaries for the employees, better offers and incentives, giving them what they deserve as per their manufacturing and production done and giving them the right payment and wages for the work is very important. We have seen many examples of big companies like Apple or KylieCosmetics not paying its Bangladeshi workers for the manufacturing of what they deserve. Many lawsuits were filed against the same companies as well. Thus, make sure to work in a responsible manner and give the workers what they deserve for ethical growth.


Related Solutions

What are some positive and negative affects of globalization on developing countries like Kenya and Ethiopia?...
What are some positive and negative affects of globalization on developing countries like Kenya and Ethiopia? What about the United States?
Case Study Much production in the modern economy takes place within corporations. Like other firms, corporations...
Case Study Much production in the modern economy takes place within corporations. Like other firms, corporations buy inputs in mar-kets for the factors of production and sell their output in markets for goods and services. Also like other firms, they are guided in their decisions by the objective of profit maximization. But a large corporation has to deal with some issues that do not arise in, say, a small family-owned business. What is distinctive about a corporation? From a legal...
What countries were involved in the Vietnam War and why were they?
What countries were involved in the Vietnam War and why were they?
Q. provide supply-side interventions in reducing fertility rate in low income, high fertility countries like Ethiopia....
Q. provide supply-side interventions in reducing fertility rate in low income, high fertility countries like Ethiopia. the interventions to be used must be proven successful in a developing country and you must identify the low income, high fertility countries where these intervetions are needed. also make a determination as to whether the interventions identified would make a difference in the country identified in terms of fertility rates. its a report question so please answer accordingly.
Russia has recently started a push for stronger smoking regulations much like those in Western countries...
Russia has recently started a push for stronger smoking regulations much like those in Western countries concerning cigarette advertising, smoking in public places, and so on. Listed below is sample data on smoking habits of Russians that are consistent with those Analyze the data and answer the following questions. Develop a point estimate and a 95% confidence interval for the proportion of Russians who smoke. Develop a point estimate and a 95% confidence interval for the mean annual per capita...
What are the institutional foundations in Western countries such as the United States that have fostered...
What are the institutional foundations in Western countries such as the United States that have fostered and cultivated significantly higher economic growth over the last 200 years in comparison to many other places around the globe? What role do property rights and rule of law play in creating an economic environment generating human betterment? There are a large number of critics of the market economy and its growth-sponsoring institutions. Discuss some of the reasons for these “anti-capitalist” views and explain...
What are the different types of inventories? What is the difference in bookkeeping that takes place...
What are the different types of inventories? What is the difference in bookkeeping that takes place between the periodic and perpetual approaches? What are the complicating situations for determining which items should be counted as part of inventory? What are the three primary cost flow assumptions, and how would management choose among them? How do different cost flow assumptions impact what is reflected on the balance sheet and income statement? Why do we need to discuss LIFO liquidations in the...
What are the different types of inventories? What is the difference in bookkeeping that takes place...
What are the different types of inventories? What is the difference in bookkeeping that takes place between the periodic and perpetual approaches? What are the complicating situations for determining which items should be counted as part of inventory? What are the three primary cost flow assumptions, and how would management choose among them? How do different cost flow assumptions impact what is reflected on the balance sheet and income statement? Why do we need to discuss LIFO liquidations in the...
What is the increase/decrease in overall company profits if this transfer takes place?
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 12000 units to the Production Division at 1050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $1750 and unit variable costs and fixed costs of $1050 and $700, respectively. The Production Division is currently paying $1600 per unit to...
What impact will the cultural differences between Eastern and Western countries have on financial accounting and...
What impact will the cultural differences between Eastern and Western countries have on financial accounting and reporting? Please give two specific examples
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT