Do you agree with the EU's threat to use trade agreements as a weapon in the fight against low-cost subcontracting? If governments were to regulate the number of subcontractors that can be involved in the production of a product, do you believe businesses that outsource their work would be more prone to respond ethically to catastrophes and to working conditions in general? •

Respuesta :

Trade agreement is known to influence companies in different ways. I agree with EU’s threat to use trade agreements as a weapon in the fight against low-cost subcontracting.

  • Businesses that outsource their work would not be more prone to respond ethically to catastrophes because Outsourcing by firms mount pressure on the business to monitor and maintain high-quality standards.

This can be a  way to handling the issue with the developing countries. Tariffs on trade was once used by the European Union.

I believe that trade agreements are good tools that can fight against poor labor conditions that is prevalent developing nations.

The regulation used can make firms to have a more concentrated and vertical supply chain that is manageable and accountable.

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