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Hello Sir,
In the solution to the (a) part of the question, concerning the Adams brand, it was stated that “credit will be awarded for discussion of possible reasons for impairment /limited useful life of the brand, for example, the use of low cost overseas labour by Lynott Co.”
Please, how will the use of low cost overseas labour by Lynott Co impact on the Adams brand?
Certainly in the UK there is a growing interest in ‘fairness’ involving the creation of adverse publicity where wealthy Western organizations are exposed as being exploiters of ‘cheap’ labour from countries that are not as fortunate as most of those in the Westof Europe
The UK populace likes to make a song and dance about exploitative practices by our multinational companies particularly where children are involved in working for the production of goods that are then sold in the European market for undreamed of prices
And the resultant bad publicity does have an adverse affect on the brand names that are exposed as being participant in this exploitation
Ok?
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