Selecting a company to subcontract to is a very complex decision-making process. Initially it is necessary to consider direct and indirect factors because they significantly influence the results. Factors that could definitely influence the company are costs, export taxes, location and quality expertise. Indirect factors may be the factory regulations and its working conditions. Often some elements can clash. Then companies have to make sacrifices on aspects that are less important. These disadvantages are generally seen as costs of decision making. Furthermore, the externalities that have occurred towards third parties external to the company should not be overlooked. Ultimately, the decision should be made based on the benefits outweighing the costs. At first glance, there are no direct disadvantages of subcontracting in Mexico. Their workplace compensation and lenient environmental policies are much more desirable from an operational standpoint. Conversely, the advantage of low labor costs can be a disadvantage as it can be perceived as exploitation. Companies are generally held responsible for how they produce their products. Therefore, producing in regions with unfavorable conditions could risk casting the business in a less desirable light. Furthermore, due to their size and reputation, multinationals are normally more vulnerable to criticism. Large companies can hardly tolerate the negative publicity associated with bad practices. Therefore, even if the disadvantage of producing in Mexico is only indirect, it could still constitute a substantial negative factor in terms of the company's reputation. However, given the nature of large multinationals, they should undoubtedly be able to overcome these negative disadvantages. perceptions with different methods. First, they can administer their or...... middle of paper ...... rom https://www.continuetolearn.uiowa.edu/laborctr/child_labor/about/causes.htmlLozaday, C. ( 2014, July 17). Multinationals, wages and working conditions in developing countries. Retrieved from http://www.nber.org/digest/oct03/w9669.htmlMojonnier, T. (2012, February 17). When child labor is ethical. Retrieved from http://businesstheory.com/child-labor-ethical/Duhigg, C & Wingfield, N. (2012, February 13). Apple asks outside group to inspect factories. Retrieved from http://bits.blogs.nytimes.com/2012/02/13/apple-announces-independent-factory-inspections/?_php=true&_type=blogs&scp=1&sq=apple%20in%20shift&st=cse&_r=0Sweatshops. (n.d.). Retrieved from https://www.mtholyoke.edu/~nshah/fashioncrimes/Sweatshops.htmlWazir, B. (2001, May 20). Nike accused of tolerating sweatshops. Retrieved from http://www.theguardian.com/world/2001/may/20/burhanwazir.theobserver