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As US-Based Organizations Move into Developing Countries, They Are No Longer

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As U.S.-based organizations move into developing countries, they are no longer subject to U.S. employment law and the strict standards that would be required for the equivalent operation in the States and overhead and operating expenses are a fraction of what a State-side location's would be. Even with low pay and harsh working conditions, they find workers eager to fill positions, and that doesn't incentivize improvements in the working conditions. With competition driving down prices in the U.S. while costs are holding steady or rising, the trend has been to relocate manufacturing facilities and even some service centers from the US. to developing countries. There are obvious economic incentives in the reduced operating and labor costs, and the potential for tax breaks and incentives from the host country's government can make offshoring more attractive. Despite the economic benefits, there is evidence that should serve as a cautionary tale. What provides a warning that this is not a good practice to continue?


Definitions:

Normal Function

The regular, intended, or unimpaired operation or activity of an organism, organ, or system.

Disease Process

The series of events related to the development and progression of a disease, including its onset, symptoms, and effects on the body.

Medial

Pertaining to or situated toward the midline of the body or an organ.

Lateral

Pertaining to or situated at the side.

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