Transnational Capital Auction

Starter 7: Trade Dilemma

Most people agree that the government of Burma (known also as Myanmar) is repressive. The U.S. State Department issued a report saying that Burmese “soldiers have committed serious human rights abuses, including extra judicial killing and rape.” Human rights organizations have documented the widespread use of forced labor. In order to protest human rights abuses there, the government of Massachusetts passed a law saying that it will not purchase major goods or services from any company that has investments in Burma.

The European Union and Japan complained that this was a violation of free trade because what is important about a good is the product itself, not how it was produced or who produced it. The National Foreign Trade Council, representing 580 U.S. companies — 346 of which do business with Burma — agreed. They said that Massachusetts has no right to pick and choose whom it will buy from based on anything other than the price and the quality of goods to be provided— period.

1. Do you agree with the position of the National Foreign Trade Council?  Why/Why not?
2. In general, which is more important: protecting the free flow of goods and services, or the right of individual nations to make rules for themselves?  Explain.

Transnational Capital Auction

In class simulation.  See below for makeup assignment.

HOMEWORK

1. Auction Writing:  Must finish typing the answers to two of the questions by tomorrow (you MUST answer question 2!).  Due:  Friday, 1/16
2. IF YOU WERE ABSENT: Transnational Capital Auction Makeup Assignment.  The final typed paragraphs will be due (emailed) before you come to class on Tuesday, 1/20.