Question

You are a US senator deciding whether to vote yes or no on new legislation. The potential new law places restrictions on the practice of outsourcing work to low-wage countries and is designed to protect US 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 at home 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 made at home and, therefore, create new jobs at home.

7-5. Do you think companies bear an ethical burden when they contract production to factories abroad and reduce jobs at home?

7-6. As a 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?

Answer 1

A. Yes,I do think that companies have an obligation towards the domestic territory and it should be trying to fulfil with the the societal responsibility and provide jobs and employment in the society it is operating into, and not venture into foreign investment without fulfillment of the Social responsibility so I will be voting YES because it was leading to reduction of jobs at home.

B. I will be voting YES, because I want the job to stay in my own country and I will want that domestic production should go up and there will be more production of the domestic output and growth of the domestic country.

C. I will be suggesting that firms should be provided with better incentives at home and tax deduction at home in order to make them attract in establishment of more unit in domestic territory itself.