To explain: The possible course of action for the American executive.
Explanation of Solution
The possible course of action for the American executive:
The situation of child labor is not uncommon in most of the underdeveloped countries. While the manager is right about the possible consequences of removing the girl from the job, allowing the girl to operate as a child labor is not the right thing to do. The notion of the manager is right but the course of action is wrong.
The American executive must look into developing a corporate social responsibility fund to provide free education and livelihood to underprivileged children like her in the area they operate. Regardless of what is the situation admitting the girl as a child labor is wrong. The American executive must take the steps to ensure all these children get the minimum education possible so that they can create their own life.
The actions of the American executive will also bring goodwill among the employees, consumers and other stakeholders. It will also make a strong statement that the company cares about the people apart from generating profits.
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Chapter 5 Solutions
International Business: Competing in the Global Marketplace
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