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A Sweatshop is a factory, usually in a developing country, a country of the "third world" (often Asia), or in South America, where humans for very little wages (often less than 1 USD per day) work and are produced goods such as clothes, toy, (turn) shoes and other consumer goods for the export. Often multinational companies page work and labour-intensive activities out into such Sweatshops. Orders for production are assigned to local subcontractor, whereby the respective company is no more merged into the actual production process and itself on the structure of the respective marks and/or connected with it the image can concentrate. By the associated mobility in the placing of orders are local subcontractor at strong pressure to undercut itself mutually.
The expression Sweatshop (weld-rubbing factory) suggests that the employees are exploited. This can take different forms:
The legally weak situation of the employees can lead even to further dependence (de-facto wage slavery).
Sweatshops are usually in states developed on the basis of economic and democratic criteria to few, which were noticeable by corruption and crises. Many of these states began only slowly to open the international trade and before economically partitioned. They forced the resulting economic underdevelopment of the states for lack of capital to labour-intensive activities. In many cases particularly favorable basic conditions are ordered to multinational enterprises, how for example generous reductions of taxes and delivery deferments of payment, which leads to the fact that the societies concerned have to carry the problems of the industrialization, but not the benefit normally of the associated income comes.
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