Legislation intended to provide worker security has caused companies to respond very cautiously to change. Change has always happened but globalization has expanded the horizon and accelerated the pace. If something can be done cheaper or better or differently, someone will figure out a way to do it. Employers want a level playing field. They don't want a competitor to have an unfair advantage.
Lower costs are obviously a competitive advantage.
The comic strip Doonesbury has featured the Nike foreign low wage issue. The hot topic on college campuses is sweat shops. Kathy Lee received a flood of negative publicity when it was revealed that the apparel with her label was made in sweat shops. Several organizations are trying to address the problem of the Nike economy. The Fair Labor Association has been set up by Nike, Liz Claiborne, and other apparel companies and human rights groups.