Chapter 6 Critical Thinking Case Essay

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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…
But in these locations, such wages are reasonable, given the cost of living there. They buy the necessities of life and in many cases quite a bit more. These workers are beginning to improve their lives and provide for their families. . As with Mexico, the population is starting to save and is now buying more goods and services from the U.S.

5. Reread the Country Focus on China as a neo-mercantilist nation.
a. Do you think China is pursuing an economic policy that can be characterized as neo-mercantilist?

Yes, as China has been described as a neo-mercantilist due to its rapid rise in economic power that has been built by export led growth. It uses its cheap labor to convert into products sold to the US and other nations. They have become independent of the need to import products such as steel and aluminum and paper which has been imports in the past from other nations.

b. What should the United States, and other countries, do about this?

Considering the economic power that China has become, what can the US and other countries really do? Set up Tariff or Special Tarriff. Impose more standards for labor environment and product safety to products being exported out of China. More and more products are manufactured China, we lose the ability to make them in the US.

Chapter 6 Critical Thinking, pg 233

1. Do you think government should consider human rights when granting preferential trading rights to countries? What are the
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