You work for a congressman or member of parliament at your national legislature who must decide how

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You work for a congressman or member of parliament at your national legislature who must decide how to vote on a bill making its way through the legislative process. The bill is a new law that would restrict the ability of firms in your country to outsource work to countries that pay lower average wages than in your country. Proponents of the legislation note that foreign suppliers frequently operate sweatshops, factories where people work long hours for very low wages, often in harsh conditions. Some outsourced work is performed using child labor. Many factories have poor environmental standards and generate excessive pollution. However, opponents of the new legislation point to the benefits of global sourcing. They argue that outsourced work provides needed jobs that help decrease poverty in developing economies. By reconfiguring value chains to the most cost-efficient locations, companies in your country can reduce production costs, allowing them to hire more workers and reduce prices charged to customers. What recommendation will you make on how to vote on the proposed bill? Use the Ethical Framework in Chapter 5 to analyze the pros and cons of global sourcing.

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International Business and the New Realities

ISBN: 978-0136090984

2nd Edition

Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger

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