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

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?

A) Economic sustainability
B) It is unethical
C) Countries are mandating work standards
D) Tragedy of the commons

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