Globalization Case

Globalization

K-PAN is a publicly traded firm providing men and women’s work clothes for over 50 years. With the development of globalization, K-PAN, as other large multiple national companies like Nike and GAP, built a large production plant in Nicaragua and purchased its remaining needs through local agents in Pakistan and Indonesia. Apparently, K-PAN made this change due to its benefits from low labor cost by moving a plant from U.S.A to a developing country.

Some critics have pointed out that K-PAN’s plant in Nicaragua exhibited a couple of shortcomings associated with sweatshops from long hours, low pay, environmental, health to safety problems. In defense of the company’s public image, K-PAN’s board members then sat together to work out a solution to its operation policies in the plant in Nicaragua. Some members objected to raising the pay to local employees or improving the work conditions at the expense of the company’s profits. But others thought if the company would pay the local employees at a higher rate, the practice would encourage the enlightened consumes to do more business with the company to increase the sales and maintain the profits. The question remains what K-PAN should do to be I think K-PAN should do good to the local employees in Nicaragua by paying a living wage and do good to local employees

Sweatshop is a complicated question. On one hand, it provides the employment opportunities to development countries to increase their life standard. On the other hand, sweatshop pays the local workers at a critical low rate, which is much worse than that is paid in the home country.