Sociology

This case of Toxic Toys basically talks about the dynamics of people moving factories, manufacturing and service sectors to countries abroad to reduce their manufacturing costs and the total costs involved. Another thing that is one of the reasons for moving to Asian and other counties is the reduction of overheads as there are not many laws or legalities in these developing countries that offer low taxes, duties and labor costs.

The article starts by talking about mattle which manufactures toys and has moved to China to reduce its costs and other related liabilities. The explanation that they gave for moving out of America is the Labor Cost and how stores try to fight for every penny and cost reductions. They say that it was a necessary step to save the business and remain profitable. According to the Case it is just not American workers that have resultantly lost their jobs but Mexicans and other outsourcing venues are also getting hard hit as China takes the lead in acting as a magnet for business throughout the world.
The article goes on to say that this price reductions and cost reduction also comes at a price. Many such incidents have been reported where quality control was not kept constant and food products or such toys were exported which caused life threat to people due to their toxic nature as they are laced with led. So although price is reduced and companies become more efficient but due to less barriers to such low quality moves and motives sometimes such products are exported that cause threats to people. Although quality control is put in and the department tries to minimize such cases but still 1 of these products do make it to the users which later cause lots of problem and increase the costs due to litigation and other reasons.

So all in all what the Case has taught us is that if manufacturing or other functional departments of a company are moved to such locations it should be made sure that quality checks are as stringent as possible. Also it should be tried that People lose as less jobs as possible and as many employees are adjusted as possible so that the overall industry within the Headquarter does not suffer a huge setback that it also has to move out of the outsourced countries and shut its business down.