2) Environmental dynamism - where there is social instability, the costs of transacting increases to such a point that anysavings in labour costs are outweighed. (E.g. social flux may render contracts unenforceable - through force majeureetc.). 3) Supplier opportunism - local suppliers may charge above market price for exploiting their local knowledge.HarveyConcerned about the power of merchantcapitalists, particularly Walmart, todetermine prices in order to keep pricescompetitive. Lower prices = higher degree to whichproducers' companies will exploit theirworkforceHighly skilled labourOutsourcing is increasingly beingtargeted at high-skilled workers.Slicing production with corporatestrategies allows the core knowledge tobe trimmed down, meaning that there isless of a risk of IP theft - i.e. labour isable to be outsourced beyond low-Labour as involuntary creditorsForeign SCs are frequently used to profitfrom dangerous working practices as well asexploitative practices - MNCs are able toexport risk.This essentially renders the labour force ofthe SCs involuntary creditors. E.g. ThorChemicalsThor ChemicalsTook advantage of SA's apartheid and disregard for the well-being of its black citizen. This is, naturally, an old example.Manufactured mercury-based chemicals in Margate. Thor's business was closed down following investigations by theHealth and Safety Executive, prompted by high levels of mercury in the blood and urine of Thor's factory workers.As a result, Thor relocated to Cato Ridge, SA, in 1986, where it continued the same health and safety practices whichhad been condemned in England.Furthermore, to cut back on the price of keeping mercury levels at safe levels in its place of operation, it fired workersonce they had become contaminated. They could do this with impunity because of the great financial needs ofemployees who had no employment rights and because the regime, with apartheid, did not care:"Thor recruited individuals who queued at the factory gate for work each day, allowed them to work until their mercurylevels reached the limit and then replaced them with new recruits." (Richard Meeran, Leigh Day)1992 - 3 workers died from mercury poisoning. An inquiry into the SA'n workers of Thor who were suffering mercurypoisoning led to a successful criminal prosecution against Thor in the local magistrate's courts for manslaughter andbreaches of health and safety regulations.Compensation claims were then commenced against the parent company (Thor Chemical Holdings Ltd)
Forum non conveniensA rule that allows a court, in equity, to decline jurisdiction over a case when it believes that the matterwould be better resolved in another forum. Usually this is invoked when most of the parties andwitnesses to a case are in another location, making it more convenient for the trial to be held there,rather than where the case was filed.