The Global Path Ahead
The focus of this The Global Path Ahead explores a student’s efforts to gain international experience,
both as a high school student living with a host family in France and then for two years after graduation
while working on an AIESEC traineeship in the Czech Republic. He discusses some of the challenges of
learning about the ways business is done, bureaucratic barriers, and working with local governments. The
Global Path Ahead also includes a range of resources that discuss different aspects of geopolitics, as well
as websites that contain useful information on different aspects of geopolitical issues and for careers
involving international politics and country risk assessment.
Mini-Case 6.1, “Is Your Chocolate the Result of Unfair Exploitation of Child Labor?”
This mini-case provides an opportunity for students to consider the extent to which some of their favorite
treats may be linked to the exploitation of child labor in emerging markets. The mini-case examines the
production of cocoa, the key ingredient in chocolate, in the primary production region of West Africa. In
this region, particularly in Côte d’Ivoire, hundreds of thousands of the workers are children, most of them
under the age of 14. The discussion explores the exploitation of these child laborers, including the hazards
and deplorable working conditions they suffer and the vicious cycle that they and their own children fall
into. Both private industry and government have raised the issue to global levels of awareness but the
problem persists and, in fact, many if not most consumers of chocolate are unaware of the nature and
extent of this problem. Boycotts and trade sanctions imposed on offending countries generate only
minimal results. Fair-trade practices are being implemented to encourage farmers and producers to
initiate appropriate social, labor, and environmental practices. This serves as a starting point for a
stimulating class discussion on the topic of “Should labor practices in another country be a relevant
consideration in international trade? Why or why not?,” “With regard to trade in products such as cocoa,
what options are available to governments, businesses, and consumers for dealing with practices such as
child labor or slave labor in other countries? What are the implications associated with each of these
options?,” and “How would international trade theorists view the fair-trade movement?” Potential
answers to these questions would be:
1. Should labor practices in another country be a relevant consideration in international trade? Why or
why not?
This question offers an opportunity for students to reason through the ethical issues and the business
realities of child labor. One approach is to position the late economist Friedman’s position on social
responsibility of business (the fiduciary responsibility to shareholders to achieve the best possible
business results within a legal framework) against a broader notion of the social responsibility of
business, such as the stakeholder theory.
From a pragmatic view, the Internet and increased monitoring of corporate activities by watchdog
groups suggests that consumers may demand greater levels of social responsibility. Rather than face
boycotts, trade sanctions, and certification requirements, businesses may want to meet consumer
expectations for social responsibility before such responsibility becomes legislated.
2. With regard to trade products such as cocoa, what options are available to governments, businesses
and consumers for dealing with practices such as child labor or slave labor in other countries? What
are the implications associated with each of these options?
Governments can establish trade boycotts and certification requirements. These approaches carry
compliance costs to the business and slow down or constrain the movement of supplies. They could also
increase the cost of the raw materials.
