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More than 500 U.S. firms have developed offices or factories in China. Many other U.S. firms have become exporters to China in recent years. However, the U.S. government has periodically threatened to restrict business between the United States and China until China improves its human rights record. The U.S. Chamber of Commerce has estimated that heavy restrictions of U.S.–China business could cause layoffs of 150,000 U.S. workers. Should the United States use trade restrictions as a means of encouraging improvements in human rights in some countries? If so, how will this affect U.S. firms that are considering business in less developed countries?

Financial Management, Finance

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