Case Study #1:
Please refer to Mini Case Mini-Case
“Is Your Chocolate the Result of Unfair Exploitation of Child Labor?”
1. Should labor practices in another country be a relevant consideration in international trade? Why or why not?
Yes, labor practices in another country should be relevant for consideration in international trade. The reason for concern is labor and social advocates has increased imports from countries in which labor standards are apparently not enforced at an adequately high level.
It’s important to have labor restrictions and eliminate unfavorable wages and poor working conditions in the developed importing countries. The low labor cost in developing countries is the result of poorly protected core labor rights. The trade is based on low wages and is sometimes seen as unmerited or illegal. The International Labour Organization estimates that 215 million children ages 5-17 are engaged in child labor (ILO, Accelerating action against child labour, 2010). An estimated 12 percent of children in India ages 5-14 are engaged in child labor activities, including carpet production (UNICEF, State of the World’s Children 2010). Approximately six out of ten slaves in the world are bonded laborers in South Asia (Siddharth Kara, Sex Trafficking: Inside the Business of Modern Slavery, 2008)
The United States has a strong concern to up hold international labor standards. I think it’s a moral obligation to foreign workers as well as concern that low labor standards in other countries make unfair competition for US. Also I would think the majority of the US citizens feel we should not allow products to be imported when they have been made under conditions in infringement of international labor standards.
2.With regard to trade products such as cocoa, what options are available to governments, businesses and consumers for dealing with practices such as child labor or slave labor in other countries? What are the...
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