companies face nowadays is the outsourcing of production to a low-wage country in order to cut costs. Big companies move production from their own country to a less developed country leaving old employees unemployed. The company usually hires a subcontractor in the country they move production to and let them handle the practical things. Unfortunately in most cases the way the
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Appellee Appeal No. 04-90-00382-CV COURT OF APPEALS OF TEXAS‚ Fourth District‚ San Antonio Key Facts Traco Inc is an aluminum company that supplies pre-engineered aluminum and glass sliding doors and windows. Arrow Glass Company is a subcontractor who initially brought suit against Traco on the theories of promissory estoppel and negligence for Traco’s failure to supply aluminum and glass sliding doors at the quoted price. After a bench trial‚ the trial court held for Arrow solely under
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technological changes affecting its market. However‚ profits have declined and remained low during the 1990’s despite efforts to modernise. In reviewing this case it is tempting to view its current methods as inefficient‚ with an over-reliance on many subcontractors‚ with the temptation of following a Western European/USA model of centralising production and driving tighter Arms Length Contractual Relations (ACR) to drive efficiency and reduce costs. However‚ the business system operating in the region
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Sadie Nussbaum‚ an eighteen-year-old Jewish girl who had lived in the United States of America her entire life along with 148 of her fellow workers‚ was killed in the fire in the Triangle Shirt Factory(Nussbaum death certificate). Ever since‚ historians and advocates have asked the question‚ “Who should be held responsible for their deaths?” After looking at many sources it seems that the owners of the building‚ Blanck and Harris‚ were ultimately responsible for the fire. This is because they failed
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production or assembly" (Ballinger & Olsson‚ 1997). This approach also allows Nike to keep an arms-length arrangement with its subcontractors‚ stating that‚ "it is not they who employ cheap labor‚ but their contracted suppliers‚ hence the responsibility lies with the latter" (Ballinger & Olsson‚ 1997). This strategy resulted in Nike requiring steep wage concessions from its subcontractors to continue its intense growth patterns. "Nike has always paid the lowest possible wages in Indonesia‚ claiming year after
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Regulatory Reform (Fire Safety) Order 2005‚ Control of Substances Hazardous to Health Regulations 2002 (COSHH)‚ Electricity at Work Regulations 1989‚ Provision and Use of Work Equipment Regulations 1998 The health and safety of the employees‚ clients‚ subcontractors and visitor working on the Facility may be at risk if these concerns will not be looked into or treated with high importance. Failure to...
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has over $9 billion in revenues. After several years of record breaking performance Nike’s global labor practices were brought to the attention of the public as early as the 1990s. Which included publishings in Harper’s magazine that a Nike subcontractor paid woirker’s just under 14 cents an hour. Other reports include a CBS 48 Hours report on the physical abuse of Vietnamese workers‚ which supervisors beating employess with shoe parts when production problems arose. On April 24‚ 2000 Philip
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Introduction Nike is in many ways the quintessential global corporation. Established in 1972 by former University of Oregon track star Phil Knight‚ Nike is now one of the leading marketers of athletic shoes and apparel on the planet. In 2006‚ the company has $15 billion in annual revenues and sold its products in some 140 countries. Nike does not do any manufacturing. Rather‚ it designs and markets its products‚ while contracting for their manufacture from a global network of 600 factories scattered
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fraction of the apparel industries in developed nations that have been threatened by the price penetration strategy of NIC imports. In response to this competitive advantage of NICs‚ apparel firms initiated the globalization of production through subcontractors and subsidiaries‚ as trade barriers during the last decade of the 20th century declined at a remarkable pace. By relocating production facilities in developing nations where production inputs such as labour‚ were at optimal costs; MNEs regained
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for without causing the delay for the whole project. 2. progress payment Progress payment is a periodic payment to a subcontractor‚ supplier‚ third party manufacturer or service provider for work that is done according to the contract. 3. outsourcing Hiring a subcontractor‚ third party service provider to complete one or more tasks. 4. preferred supplier Subcontractor or third party or service provider whom the company is signing contract with‚ contract or agreement for using their service
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