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Business and Economic Ethics

Please provide brief comments for these answers:

1. Evaluate whether or not you believe a U.S.-based company outsourcing jobs to foreign markets is ethical. Support your position.

I believe outsourcing to foreign markets is unethical; though it makes good business sense. This is because the jobs that they are sending oversea could be filled by the unemployed US citizens that are actively seeking employment, VETS who are actively looking for work, or given to those individuals who are receiving government assistance. In addition, the pay for these jobs is much lower when outsourced vs. if they were filled onshore.

2. The regime in China has been known to manipulate it currency creating a competitive a world competitive advantage for the manufacturing of goods. Evaluate the impact to the U.S. manufacturing industry and make a recommendation on how the U.S. should deal with the practice of currency manipulation.

Currency manipulation provides an unfair subsidy to Chinese exports — of up to 40 percent, by most economists' estimates — and represents the most protectionist policy of any major country since World War II, according to economist C. Fred Bergsten of the Peterson Institute. And when American manufacturers try to sell their products to China — our nation's fastest growing export market — they are hit with the same percentage in what amounts to an unfair tariff. The cost advantages enjoyed by Chinese manufacturers cost American jobs.
I agree with Senators Olympia Snow, Charles Shumer and Lindsey Graham in stating: By improving oversight of currency exchange rates, the bill would ensure that the Treasury Department properly identifies countries that undervalue their currencies and act accordingly. It would also establish new criteria to identify countries manipulating currency — and trigger tougher consequences for those that engage in such unfair trade.

Solution Preview

1. I agree with your assessment to some degree, due to the fact that from a patriotic standpoint, it would seem to be unethical for businesses to continue to outsource jobs overseas. This situation does cause an increase in the unemployment rate among Americans, and more importantly causes there to be fewer jobs that pay a livable wage within this country. This outsourcing has resulted in the vast majority of the jobs available for Americans being in the service industry, which often pay minimum wage or some ...

Solution Summary

This solution describes ethical considerations in international business.

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