PROBLEM 1
The production costs of your farm in Haiti rose by 10% because of the increase in salaries and of the adjustments to laws which regulate workers safety at work. Digifoot, a competing firm, has just opened a farm in China where salaries are lower and trade unions are weaker. In this way, their shoes cost 15% less than yours.

WHAT DO YOU DO?

1. You open a farm in China but leaving the one in Haiti at least one year.

2. You begin an advertising campaign on work conditions in Chinese farms to strike Digifoot competition.

3. You close Haiti farm and you open one in China.

4. You begin an advertising campaign of your shoes underlining that buying yours helps the poor people in Haiti that work for you.