Question

In: Economics

Examine whether or not US consumers should boycott or increase in the purchase of these goods...

Examine whether or not US consumers should boycott or increase in the purchase of these goods and the effects that boycott or increase in purchase would have on the workers.

Should standards be set for work rules in other countries? Or, should work rules be left to the political system in a particular country?

Solutions

Expert Solution

Answer :-

U.S. government cannot set standards for employees in other nations. But it can influence trading activities with those trading partners which are expected to have poor working conditions for the workers. Naturally, a healthy and safe working environment will increase productivity of these same employees. U.S. government can extend financial help to these nations on the condition that they improve the working conditions of their workers.Consumers face a lower price for these products and a choice to make from the variety of imports they choose from. In no manner whatsoever, consumers will shift to domestically produced goods which are almost similar in quality but are highly expensive. Hence boycott is not a solution. However, increase in demand for these products will increase pressure on employers in exporting nations. They might hire more labor which also included des child labor. Hence the exploitation will going to increase further. A proper balance between both purchases is required henceforth.

U.S. government cannot set standards for employees in other nations. But it can influence trading activities with those trading partners which are expected to have poor working conditions for the workers. Naturally, a healthy and safe working environment will increase productivity of these same employees. U.S. government can extend financial help to these nations on the condition that they improve the working conditions of their workers.


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