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Asia » Thailand
April 4th 2013
Published: April 4th 2013
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Source: http://ihscslnews.org/veiw_article.php?id=38

Multinational corporations such as Mattel, subcontract other companies to manufacture products for them in third world countries rather then just opening a Mattel factory. This is because if one of the daughter companies were to go under and fail due to some reason, the only loss would be that daughter company, rather then Mattel taking a direct blow to its manufacturing.

Workers rights and protections are so weak or non-existent in developing nations like Thailand because they are trying to create an economy in their nations. If the nations government were to suddenly create all these regulations and restrictions, the company would most likely pack its bags and move elsewhere to less regulations because it is cheaper to do so. So in order to keep the companies around, there is little rights and protections for the workers.

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