You are the U.S. senator deciding whether to vote yes or no on a new legislation. The potential new law places restrictions on the practice of outsourcing work to low-wage countries and is designed to protect U.S. workers’ jobs. These days it is increasingly common for companies to promise manufacturing contracts to overseas suppliers in exchange for access to that country’s market. Labor union representatives argue that these kinds of deals cost jobs as factories close and parts are made in lower cost China. They also say that the transfer of technology will breed strong competitors in other nations and thereby threaten even more jobs at home in the future. Yet, others argue that market access will translate to increased sales of products mad at home and, therefore create new jobs at home.
7-5 Do you think companies bear an ethical burden when the contract production to factories abroad and reduce jobs at home?
7-6 As senator, do you vote yes or no on the pending legislation? Explain.
7-7 Depending on how you voted what policy instruments might you suggest that your government introduce?