Levi 2

answer using attached

“Levi Strauss at Home and Abroad”  Please respond to the following:

· According to the case study, in the early 1990’s, Levi Strauss instituted a policy of only outsourcing to factories that met certain guidelines involving employee treatment and pay. Following this decision, the company stopped all production in China after concluding that Chinese producers could not meet those requirements. Explain how Levi Strauss’s decision in the early 1990’s to halt outsourcing to China might be seen as a profit-driven business decision motivated by the market forces of supply and demand. Assuming Levi Strauss took this action as a response to the market, consider in what ways that might affect the moral standing of the company’s decision.

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The 19th century economist David Ricardo argued that a country should produce goods that it could create at a lower cost than other countries—those goods in which it has a comparative advantage. Formulate an argument supporting Levi Strauss’s actions in the case study based on this principle. Discuss the possible challenges that might arise from this approach