Question 5 Chapter 1

2. In chapter one the author brings up some controversial issues and how economics plays a big role in solving them. One issue is if Nike should pay its foreign workers more money since its only $600 a month(25). The author answers  "That is a pathetic amount of money. It also happens to be twice an average Vietnamese workers annual income"(25). Nike isn't actually however paying a pathetic amount but twice more than the countries average annual income. The author also addresses that sweatshops however help countries develop. I would fall on the side of saying that Nike is thinking about their rational self interest and thinking about ways that make their company better off. Although this can be a controversial topic in the sense that people think Nike is ripping off sweatshop workers you need to think about their economy and how different their lives are then ours. Lastly you need to think about the long run. What will it do for their economy in the long run and for our economy as well.