Nike and many other companies have been criticized for using contract manufacturing with sweatshops that employ workers for very low wages and in poor working conditions. In many countries where much of today’s manufacturing takes place, there are few or no health and safety regulations. Some employees get hurt and die on the job. People complain that the United States is losing jobs overseas to companies that are exploiting people.

However, others argue that most Americans don’t want these jobs and that the U.S. companies are helping people in other countries by giving them jobs. Thus, these companies are raising the standard of living in other countries and keeping prices down at home.

1. In your opinion, are companies that hire sweatshop workers helping these workers or exploiting them?

2. Should a global company compensate all employees at the same rates, or should compensation be based on the cost of doing business and the cost of living in a given country?

3. Is it possible for a company to apply the same health and safety standards that it follows in the United States of America to its operations in other countries and still compete globally with companies that don’t apply such standards?

4. Is it ethical and socially responsible to contract work with sweatshops?

5. What, if anything, should be done about sweatshops?