Nike and Google launch Joga.com
No need to quote 'sweatshops'. They are sweatshops.
Re: your question, 'Would they be better off...' understates the complexity of the economic factors. In an either/or situation, workers have no real choice, so I agree with the short view that the job is good. But, albalbo has it right: Nike perpetuates the environmental conditions that provide this either/or choice in the first place. Not only that, but when corporations exercise the option to employee workers in violation of US labor laws, they subvert the sound labor policies in this country. Why care? The implications of this choice affect U.S. productivity. In is not in the interest of the U.S. to allow U.S. corporations to behave in this way. Whether the U.S. has the right to legislate a remedy is a separate question, but in my opinion it is the right thing to do.
Ucklak, you may be playing the Devil's advocate by making a case for free markets rather than human rights. That's fine, but the economics of the free market are skewed by the low-cost labor overseas.