Mattel’s Toy Recalls

Running header: Mattel’s Toy Recalls 1
Mattel’s Toy Recalls
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Mattel’s Toy Recalls 2
Question 1.
Companies contract overseas for the production of products mainly because of the
advantages they acquire from the overseas countries. To begin with, we have cheap labor. By
outsourcing on cheap labor, firms are able to cut on the costs of their products (Kotabe &
Murray, 2018). For example, Apple Corporation, one of the largest electronics and technology
company in the world, outsources all of its labor from China primarily due to its low cost.
Secondly, availability of cheap and easily available raw materials. In order for firms to ensure
their products are designed as cheaply as possible, they may outsource services to countries that
have enough raw materials. This also ensures that firms can acquire as much profit as possible
from the sales of the products (Kotabe & Murray, 2018). Thirdly, firms can get tax benefits as
well as other government policies advantages for outsourcing production from overseas
countries. Lastly, companies can benefit from currency fluctuation hence being able to produce
their products at a low currency rate. This ensures the firms save on expenses hence increasing
their profit margin.
Question 2.
In the case, there were different reasons for the recall of Mattel’s toys. However, the
primary causes included problems in design, manufacturing, and product misuse. Beginning with
manufacturing problems, we have the excessive usage of lead paint on toys. The lead paint used
on the Mattel toys was harmful to the children (Choi & Lin, 2009). Lead is a neurotoxin, and
repeated exposure to it can cause brain damage. Therefore, it could affect the developing brains
of the children. Secondly, we have the product design. In the toys, there was an increased usage
of powerful magnets. Besides, the magnets were not appropriately encased and children could,
therefore, swallow them hence dislodging in their intestines (Choi & Lin, 2009). For example,
when a child ingests several magnets, the magnets could bind together across the intestinal folds
hence perforating the intestines. This would then lead to death or injury. Lastly, we have product
misuse. Some features incorporated within the toys were not supposed to be present however the
children found creative ways to play with them although that was not anticipated by the
designers of the toys.