Suppose I outsource some of my domestic production to a Bangladeshi subcontractor whose factory is a fire hazard. Is this any different from my importing Bangladeshi workers and putting them to work directly at home under hazardous conditions? From an economic standpoint, the answer is no. From an ethical standpoint, we may split some hairs, but the answer is also no to a first order of approximation. Why should trade allow me to do something that domestic regulations explicitly forbid? The point is that international trade occasionally serves to undermine long-standing social bargains reflected in domestic regulations. While we cannot immediately jump from this to the conclusion that such trade ought to be restricted, it would be equally wrong to assume that free trade should always be the norm.
Posted on: Tue, 11 Mar 2014 11:18:00 +0000
Trending Topics
Recently Viewed Topics
© 2015