You are the owner of a multinational office supply company. Your profit margin has increased significantly since

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You are the owner of a multinational office supply company. Your profit margin has increased significantly since the company began outsourcing manufacturing to Indonesia.

This move has helped the Indonesian economy as well, creating lots of new jobs.

The cost of Indonesian labor is increasing as the economy improves. Cheaper labor is available elsewhere, but your company has developed a relationship with its Indonesian manufacturing division. Do you pull your company out of Indonesia in favor of cheaper labor in another country? Do you maintain your loyalty to your Indonesian partners, as they have proved to be a valuable business partner? Is it possible to come up with a solution that will reward your Indonesian workers and simultaneously utilize less expensive labor in other developing countries? Devise a potential solution to this ethical dilemma. 5

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International Business

ISBN: 175031

7th Global Edition

Authors: John J. Wild

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