U.S. companies that move factories to undeveloped nations barely pay employees enough to live on. Is it unethical to pay cheap wages or are companies doing those workers a favor?

Profits not the main points; cheap labor is a common term utilized in many of the undeveloped nations that result from the notions of high poverty and low unemployment rates.  Poverty and unemployment contribute to the discouragement of workers hence, impact the labor force promoting to cheap labor.  High rates of unemployment and poverty among the undeveloped countries have enhanced to different initiatives of the undeveloped citizens looking for alternatives of surviving and as result, developed countries utilize the opportunity of cheap wage payments and cheap labor in maximizing the profits of the company.

The establishment of United States companies in undeveloped countries is a significant aspect since it enhances high rates of employment and reduces poverty. Undeveloped countries government plays a significant role in allowing the legal operation of U.S companies into the country as a result of increasing the employment level and reducing poverty.  But in some cases, the government does not consider the aspects of cheap labor and low wages instead oversees the strategy as significant to the citizens.  If the government in undeveloped countries considered the aspect of cheap labor and cheap wages initiated by developed countries; it is obvious that there would be legal laws and policies protecting the employee’s rights.

Provided with the notion that U.S companies moving factories to the undeveloped countries and offering cheap labor and cheap wages that cannot sustain the life of the employee provides unethical mechanisms; despite the fact that the initiation of the companies act as a favor to the workers by providing ready employment opportunities.

Through this approach, the company gains full advantage while the employees get exploited. Offering cheap labor and wages to workers in undeveloped nations by U.S companies signifies that the companies striving for maximum profits and exploiting employees.  It is important to adhere to the ethical code of conduct in handling employee by providing the employees with their significant rights. Despite the fact that employment rates in undeveloped countries are still low and provided with the fact that when U.S companies move factories to undeveloped countries; labor is ready and as result, workers in the undeveloped countries are looking for alternatives of surviving hence, it is ethical to compensate the employees with the right amount of wages in accordance with the specific work task performed. Taking such an opportunity is unethical since the exploitation of workers is enhanced and the companies utilizing the resources gain a huge advantage on profits.