Author: Abrami, Regina M.
Source: Harvard Business School
Number of pages: 32
Examines the political and economic dimensions of the campaign to improve workers' rights around the world through the inclusion of labor standards in international trade agreements. The U.S.-Cambodia Textile Trade Agreement was the first agreement of its kind to link increased access to markets to improved working conditions in an exporting country. Some argue that labor standards are becoming a new form of protectionism. Others see them as necessary to preserve open markets and fair trade. How this debate is resolved will undoubtedly have great implications for investors in developing countries and ultimately for the economic development of the poorer countries themselves. Teaching Purpose: To expose students to debates surrounding the inclusion of labor standards in international trade agreements.