According to the Oxford dictionary, capitalism is "an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state". (Oxford) Over the past few decades, the world has seen a significant number of companies in developed economies move their factories to countries with more flexible labor laws and lower labor costs such as China, in order to increase profits and please customers. its shareholders. As a result, sweatshops in countries like China have increased in number; most of which have horrible working conditions. In this article I will explore the morality of businesses' decision to move factories to countries without labor protections, thus relying on sweatshops to produce cheaper goods that lead to higher profits. I will draw on the arguments and theories of Karl Marx, John Rawls and Robert Nozick to demonstrate that these business decisions, made possible by free trade, do not serve the greater good and, despite the economic development benefits that result from them, it is not enough to justify the violation of workers' individual rights. I will begin by expounding Marx's communist theory from the Communist Manifesto to show how class stratification has developed over time. I will then draw on his critical analysis of capitalism in his piece Das Capital and show that his labor theory of value and capital is convincing in illustrating the danger of the exploitative nature of capitalism. Next I will expound John Rawls' social contract theory to make clear the freedoms that should be afforded to human beings. Through Rawls's Principles of Freedom, I will demonstrate that free trade capitalism is unjust and suggest a welfare... middle of paper... necessary to establish a welfare system that mitigates the effects that are ignored in a welfare system. free trade system. I have also discredited Nozick's defense of libertarian views and demonstrated that a free-trade capitalist system is not only inherently exploitative but also provides a structure through which the individual rights of workers are unconscionably violated. Works Cited Marx, Karl and Friedrich Engels. "Capital." Volume of Capital I. Ed. Robert C.Tucker. vol. 1. London: WW Norton and Company, 1867. 3 vols.Marx, Karl and Friedrich Engels. "The Mark-Engels Reader." The Communist Manifesto. Ed. Robert C. Tucker. London: W. W. Norton & Company, 1978. Nozick, Robert. "Anarchy, State and Utopia". ndRawls, John. “A Theory of Justice.” Rawls, John. A theory of justice. London, ndOxford dictionary, “Capitalism” http://oxforddictionaries.com/definition/capitalism