Suppliers to global value chains face formidable efficiency demands to produce ever more cheaply and rapidly. Suppliers in the Global South often compete on labor costs and operate with very low margins, and multinational companies’ (MNCs) demanding sourcing practices magnify these efficiency pressures. This can lead to a “race to the bottom” in labor practices, resulting in sweatshop conditions.
Suppliers to global value chains face formidable efficiency demands to produce ever more cheaply and rapidly. Suppliers in the Global South often compete on labor costs and operate with very low margins, and multinational companies’ (MNCs) demanding sourcing practices magnify these efficiency pressures. This can lead to a “race to the bottom” in labor practices, resulting in sweatshop conditions.
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