Chapter 6 Critical Thinking Case Essay

1065 WordsSep 17, 20105 Pages
Chapter 4 Critical Thinking, pg 155 1.A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year old girl to work on a factory floor, in violation of the company’s prohibition on child labor. He tells the local manager to replace the child and tell her to go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. What should the American executive do?[/b] This is very common in many nations especially those that do not have child labor laws. In this case, the company already knows it is in violation of the company’s prohibition of child labor. The manager should…show more content…
The success of a nation is dependent upon its supply of capital, and that the global volume of international trade is unchangeable. Economic assets or capital are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations, exports minus imports. In today globalized market, holds no value as corporations are competitive and large. Mercantilism suggests that the ruling government should play a protectionist role in the economy by encouraging exports and discouraging imports through the use of subsidies and tariffs. 2.Is free trade fair? Discuss. Free Trade is the absence of barriers to the free flow of goods and services between countries. According to US News and World Reports, “Free trade benefits Americans because it allows us to peddle an increasing volume of goods and services to foreign nations while taking advantage of the best quality and lowest prices that the rest of the world can supply.” But at the same time it takes away many American jobs. If jobs are moving out of the country, traditional unemployment should increase and fewer people will buy goods or services, which will eliminate even more jobs in an ever-increasing downward spiral. Many US companies are contracting work to other nations in order to lower cost and this is a major factor in a competitive

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