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Nike in Indonesia

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Nike in Indonesia An interesting reference was made to capitalism in a documentary about Indonesian Nike sweatshops; capitalism was referred to as “the survival of the fittest.” Capitalism is an economic system where the majority of the means of production are owned privately, production is guided, and income is distributed mostly through the operation of markets; in this case capitalists would be the “fittest.” However, there are two more types of people: laborers and consumers. Laborers are those who sell their labor to the capitalists, ideally for livable wages, and consumers are those who purchase the goods or services that are demanded. Ironically, capitalism would be non-existent if it was not for laborers and consumers but these are the people that are seen as “not fit enough.” There are different approaches to capitalism; one of them is called outsourcing. Companies outsource because “outsourcing can be such an approach and one of the strategies that can lead to greater competitiveness. (Ahmad)” Outsourcing can help firms because products that may cost one amount to create may have a significantly lower production cost in another country due to resources that are available in that geographic location. However, as the living necessities and wages rise in the United States, companies like Nike have decided to outsource their labor to take advantage of lower safety standards and a cheaper work force; “Nike employs approximately 23,000 people worldwide…it has been accused of unfair labor practices in Asia. (Goldman)” “One of the major issues in the world today is that many goods bought by consumers in relatively wealthy countries are produced in poor countries by workers working in bad conditions for poor wages. (Hobbs)” While outsourcing is helpful to that country’s economy, “outsourcing provides jobs for some of the world's poorest people (Bhagwati)” and is

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