Manufacturing of many electronic devices takes place in developing countries. These countries may not have laws in place to protect workers and the environment.

Question

What are two economic reasons a company would manufacture electronic devices in a developing country instead of a developed country?

Part A

(2 points)

B

I

Describe one possible positive and one possible negative impact on a local human population when an electronics company builds a factory in an area

Part B

(2 points)

Part C

Describe one type of international effort that could protect human health and the environment in a developing country where electronics manufacturing takes place.

(1 point)

Answer 1

Part A:
- Lower labor costs: Labor costs are typically lower in developing countries, allowing companies to save money on production expenses.
- Less regulations: Developing countries may have fewer regulations in place, making it easier and cheaper for companies to manufacture electronic devices without having to adhere to strict environmental and worker safety standards.

Part B:
Positive impact: The factory may provide job opportunities and stimulate the local economy, improving the living standards of the local population.
Negative impact: The manufacturing process may lead to environmental pollution and health hazards for local residents, due to lack of regulations and oversight.

Part C:
One type of international effort that could protect human health and the environment in a developing country where electronics manufacturing takes place is implementing and enforcing international environmental and labor standards. This could be done through international agreements, certifications, and monitoring systems to ensure that companies adhere to proper standards and practices.