Total Cost Minimization : The Cost Of Money

Instead of relying only on domestic workers, many companies also outsource some of their labor into foreign markets. This practice can have negative effects on the economy overall, individual businesses can often benefit from this practice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses.

Lots of well known products made overseas have been made by the works of child labor.The question is should buy them, and the answer is no. One reason not to buy them is because the children are working in dangerous conditions with heavy machinery and toxic material. But more importantly the children working deprives the of their education and childhood overall. Instead of having good childhood memories they have to work countless hours on a machine that could kill them if they don’t focus. Even if it’s true that the children working is mainly because of the survival of the family,people shouldn't buy products made with child labor because one dollar won't suffice the amount of money they have to live in the first place.

Some costs are expensive: freight cost from China, inventory (lead-time increase because of shipping), and quality control (testing shipped products from China in the US require some cost; time and money)

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine, and 46 physician extenders and nurses.

The wages and conditions of the work environment are good in relation to other opportunities the citizens of these countries have. Not only do these people now have a job that feeds their families, they are learning skills that may benefit them in the future. The companies may also argue that they are not violating any laws that the country has enacted. Without the use of cheap labor in foreign markets not only would the company and it’s stockholders lose profits, but the products being produced would be more expensive when entering the United States’ market. This in turn would adversely affect the American consumer.

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

How Child Labor Could Benefit Canada Our economy today is highly dependent on other countries for imports of goods. In order to make Canada a self-sufficient country we would need to lower our amount of imports. To do this we would need to create the goods needed within Canada that we would otherwise have had to import from China or the United States. And the only possible way to do this is to open factories all over Canada.

corporations to use cheap overseas labor” my first thoughts were yes because of my personal beliefs. But upon further thought and through discovery, I realized that from a business point of view we as a nation should still help promote economic globalization. In order to do so we need to outsource production and encourage trade. However, because we are fiscally involved in another country’s economy that doesn’t give American corporations the right to implement our laws and standards into other countries’ business practices and laws. Just because we see child labor, unfair wages, and violating overtime as immoral, doesn’t mean that the host county does. However global labor standards need to be unified.

This essay is continuation of the financial evaluation from last week; we had to choose a company among the Fortune 500 in my case I chose GE Company. This Finance is about the study of money, it helps managers and senior leadership in an organization to be able to make better objective decisions (Blacconiere & Hopkins, 2002). Every company must invest in having an accountant which will create financial statements that provides information about the financial performance of a company.

Labor is one of the largest and in certain sectors the most expensive component in the production of goods. Outsourcing acknowledges the labor cost to produce a particular product is cheaper if the manufacturer were to produce the same product in-house where the cost per unit is significantly higher. Stable labor costs are important for long-term revenue projections to be relied upon by managers because they are a precursor of where a company is trending financially. It is this efficiency-in-scale that confirms the benefit of the division of labor memorialized by Adam Smith. As a result of the wage disparity between the costs of American workers versus Chinese workers, hundreds of U.S. based firms relocated all or part of their operations to China, taking advantage of the inexpensive labor market and the many cost-saving incentives offered by the Chinese government.

Labor costs in the United States are much higher than in many parts of the world. Consequently, the costs of production for labor-intensive manufacturing can be significantly reduced by moving factories overseas mainly to third world countries this is a common practice of Nike who outsource there manufacturing to other companies in countries such as Thailand and Indonesia.[ ]

Low wages are not the only problems with factories in China, in my opinion it is one of the least important topics. The overall treatment of the workers, and the lack of a safe working environment are just terrible. A study was done on a few factories that are producing for the big name companies listed above showed that some workers were working 98 hour weeks (Dougherty). And during those long hours, there are strict rules and regulations which the workers must follow. They are under constant surveillance, under which there are strict no talking rules. If the no talking rule is in effect, which it is in most of these types of factories, workers are fined up to a few dollars for each offense after a warning. To us a few dollar fine isn't that big of a deal, but to them it can be a few days work. Workers in these factories are also subjected to harmful chemicals all day long. A case study at a Timberland factory showed that workers were working in temperature

The purpose of this paper is to answer a few important questions: Why do companies allocate costs? How do companies allocate costs? And how this cost allocation can affect the decision making of the company. It is important for the companies to find the proper method to allocate the costs. Cost allocation is an important issue in many companies because many of the costs associated with designing, producing and distributing products and services are not easily identified with the products and services that are created. It would have been easier for companies to allocate cost if costs were directly traceable with the products and the cost allocation would have been minor issue for the company. The decision-making

Money is a precious thing and it can become challenging to not spend it immediately after getting it. It is crucial that this does not happen. There is no denying that money is an important part of society. The world revolves around money and without it, one? would not be able to function. In everyday life the average household will spend one hundred and sixty dollars daily. It is safe to say that money is an resource used daily. It is a tool that can be used to connect with other people or buy anything a person could want or need. Yet it is easy to spend money without realizing how much is really being spent. With only a few simple tips it will become much easier to save money instead of spending it on frivolous things. One’s hard-earned dollar should be saved, and simple tips such as using cash instead of cards, saving small change and only purchasing what one really needs are a few of many ways of doing this. The power of money can easily be abused and it is very important to make sure that a person is well informed on ways to save and spend money wisely.