Clothing companies are outsourcing labor to factories in the Global South primarily to reduce production costs, as labor is significantly cheaper in these regions compared to the Global North. This relocation often occurs in spite of the bad working conditions, as companies prioritize profit margins over ethical labor practices. While some consumers and activists push for better conditions, the demand for low-cost clothing continues to drive production to these areas, perpetuating a cycle of exploitation. Thus, the focus on cost efficiency often overshadows the need for ethical labor standards.
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