Source 1 is illustrating a group of workers making NIKE products in a factory. A point to be noted is the working conditions shown in the image. It seems to be fairly adequate, compared to the other factories in second and third world countries owned by transnational companies. The majority of people (Asians) working suggests that the workplace is located somewhere in Asia. The ideological perspective presented in the source links to corporate responsibility. Corporate responsibility is the activities taken by the company to operate in a social and an environmentally sustainable manner. A company has to take in count of their workers, and its ecological footprint. Or else they are at risk of being exposed by the media. We have seen many transnational …show more content…
The main objective of the prompt is describing the effects of transnational companies in a developing country. “It brings the investment that creates jobs.” This quote from the text clearly shows the negative impact of outsourcing. The ideological perspective presented in the source relates to outsourcing. Outsourcing can be described as the total goods and services obtain from a foreign supplier. Many transnational companies use the idea of contract work to maximize their economic efficiency. The main reason Multinational Corporations have their facilities and assets in second and third world countries because of its low labor wages and less social barriers. For example, a NIKE employee in the United States is being paid $10.00 per hour and a NIKE worker’s hourly wage in Indonesia is $5.00 per hour. They get the same amount of work done in a given time. This is much more profitable for NIKE because they only have to give half the labor wage to workers outside of U.S. Logically, NIKE would expand their factories and workshops in other countries to increase their profits. The link between economic globalization and the ideological perspective is sustainable prosperity. Sustainable prosperity allows all human beings to live with their basic needs and abundance of opportunities to pursue lives of satisfaction and happiness. When a transnational company outsources to a country, it helps/benefits their people and the economy. First of all, the number of jobs increases giving the locals the opportunity to support themselves. Their quality of life would benefit because they now have access to the basic needs, such as; proper shelter, food, water and clothing. The economy of the country grows because of the increase in GDP. More people would come, in search of fresh opportunities. This would increase production of goods and services, thus improving the GDP. These are the reason how outsourcing