SUMMARY: The US-based electronics company Electrocorp faced the problem of declining profitability due to rising production costs, especially high wages, expensive standards environmental and worker safety. To solve this problem, Electrocorp is deciding whether to move some of its factories to South Africa, Mexico or the Philippines. The first alternative of keeping factories in the United States would mean that Eletrocorp obeys strict environmental and safety regulations, pays its workers $15 an hour, but avoids job losses in the United States. The company would incur high production costs. The second alternative, moving the factories to South Africa, would create job losses in the United States. The company would save costs by hiring workers for $10 a day and obeying less stringent safety and environmental standards. The strong union could cause problems in the future. The third alternative, moving to Mexico, would have the same effects as moving to South Africa, except that the wage for workers is $3 a day. A greater amount of costs could be saved, although Electrocorp should pay attention to citizens' health groups that could cause bad publicity. The latest alternative of moving to the Philippines offers the greatest cost savings due to less stringent environmental and safety regulations, the absence of activist groups, and the market wage of $1 per day. The evolving ethical issues can be summarized as follows: It is a transfer of Electrocorp's factories are ethical considering the loss of jobs in the United States, the exploitation of workers in the host country, and the harmful impact on the host country's environment?