Because U.S. laws tightly regulate the disposal of toxic materials from the thousands of electronic devices discarded each year, some companies have contracted with companies in China and other countries to dispose of these products. Unfortunately, the lack of regulation in these countries has resulted in unsafe disposal practices, creating toxic waste areas where drinking water and soil are no longer safe. This situation illustrates the concept of:

Social dumping is employers ' method of using cheaper labor than is usually available at their production or sales site. In the latter case, it hires migrant workers; in the former, it transfers production to a low-wage country or area. Therefore, the company will save money and potentially increase its profit. Systemic analysis indicates that governments are therefore forced to participate in a so-called social policy system by increasing their labor and social standards in order to ease labor costs for businesses and maintain business activity within their jurisdiction.

Entities derived from social dumping:

companies in importing countries

Participants in importing countries

Customers in importing countries

Industry in importing markets

Employment in exporting countries

Government and investment in exporting countries