Explain the various problems associated with workplace health and safety as a market controlled approach.
What will be an ideal response?
The free market approach has a number of serious problems. First, labor markets are not perfectly competitive and free. Employees do not have the kinds of free choices that the free market theory would require in order to attain optimal satisfactions-though enlightened self-interest would be a valuable theory to introduce and apply in this environment, it is unrealistic to presume employees always have the choices available to them that make it possible.
Second, employees seldom, if ever, possess the kind of complete information efficient markets require. If employees do not know the risks involved in a job, they will not be in a position to freely bargain for appropriate wages and therefore they will not be in a position to effectively protect their rights or ensure the most ethical consequences. This is a particular concern when we recognize that many workplace risks are in no sense obvious.
Such market failures can have deadly consequences when they involve workplace health and safety issues. Another issue is the aspect of the "first generation" problem. The means by which the market gathers information is by observing the harms done to the first generation exposed to imperfect market transactions. In effect, markets sacrifice the first generation in order to gain information about safety and health risks. To the degree that these are important questions that ought to be asked, individual bargaining will fail as an ethical public policy approach to worker health and safety.
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Studies have found that those who negotiate salary when offered a job can increase their salary by more than _____
A) 5 percent B) 7 percent C) 10 percent D) 12 percent E) 15 percent
The Foreign Corrupt Practices Act (FCPA) is U.S. legislation that
A. outlines and prohibits foreign bribery practices by foreign nationals in foreign nations. B. outlines bribery practices that are allowed abroad but not in the U.S. C. prohibits bribery by American companies abroad. D. allows bribery in foreign dealings when culturally sanctioned.
A big advantage of related diversification is that it
A. offers ways for a firm to realize 1 + 1 = 3 benefits because the value chains of the different businesses present competitively valuable cross-business relationships. B. is less risky than either vertical integration or unrelated diversification due to lower capital requirements. C. is less capital intensive and usually more profitable than unrelated diversification. D. passes the industry attractiveness test and thus offers the best route to 2 + 2 = 4 benefits. E. involves diversifying into industries having the same kinds of key success factors.
Which of the following is true about determining whether someone working for another is an
independent contractor or an employee? A) The classification of the person doing the work depends on if the person is also an agent. B) The classification of the person doing the work depends on a number of factors, with no single factor being any more important that the others. C) The classification of the person doing the work depends on that person's job title. D) The classification of the person doing the work depends on whether the parties to the arrangement consider the person doing the work to be an employee or independent contractor.