According to the Oxford Dictionary, capitalism is “an economic and political system in which the commerce and industry of a country 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 relocate their factories to countries with more flexible labor laws and lower labor costs, like China, in order to increase their profits and please their shareholders. As a result, the number of sweatshops has increased in countries like China; most of whom have horrible working conditions. In this article, I will explore the morality of companies' decisions to move their factories to countries without labor protections, thereby relying on sweatshops to produce cheaper goods that lead to increased profits. I will rely on the arguments and theories of Karl Marx, John Rawls and Robert Nozick to show that these commercial decisions made possible by free trade do not serve the common good and that, despite the advantages of economic development which result from it , it is not sufficient to justify the violation of the individual rights of workers. I will begin by laying out Marx's communist theory from the Communist Manifesto to show how class stratification developed over time. I will then draw on his critical analysis of capitalism in his article Das Capital and show that his labor theory of value and capital convincingly illustrates the danger of the exploitative nature of capitalism. I will then outline John Rawls' social contract theory to highlight the freedoms that should be afforded to human beings. Through Rawls' Principles of Freedom, I will show that free market capitalism is unjust and suggest a social welfare system...... middle of paper ...... necessary to institute a welfare system social which mitigates the effects which are ignored in a free trade system. I have also discredited Nozick's defense of libertarian views and shown that a free-trade capitalist system is not only inherently exploitative, but also provides a structure through which an impermissible violation of individual workers' rights. Works cited by Marx, Karl and Friedrich Engels. "Capital." Capital Volume I. Ed. Robert C. Tucker. Flight. 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: WW Norton & Company, 1978. Nozick, Robert. “Anarchy, State and Utopia”. sdRawls, John. “A theory of justice”. Rawls, John. A theory of justice. London, ndOxford Dictionary, “Capitalism” http://oxforddictionaries.com/definition/capitalism