Q: You are the production manager for a European-based firm that is considering outsourcing its manufacturing to a producer in China. You are asked by your firmâ€s CEO to prepare a report that outlines the benefits and drawbacks of this potential change. During your research, you find international trade theories that say protectionist actions restrict imports and harm a nationâ€s standard of living—an argument for free trade. Yet you know that free trade and global competition are driving firms such as your own to move production to cheaper locations abroad, thereby eliminating jobs in their home countries. Clearly, the gains and losses of free trade are not always distributed evenly across the population. As part of your report to the CEO, argue either for or against the need for measures that protect domestic production and, therefore, jobs at home. (2-3 pages, singled-spaced).
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