Ethical Dilemma: Suppose you are a member of a government task force evaluating the future of NAFTA between Canada, Mexico, and the United States. Proponents want to transform NAFTA into a common market by removing barriers to the movement of labor. The goal is to reduce poverty in Mexico by allowing Mexican citizens to work freely and legally in Canada and the United States. Critics oppose the common market because of the big income difference between the countries. They argue that an open border would encourage millions of Mexicans to migrate northward, seeking work, and threaten jobs in the United States and Canada. Proponents argue that, as economic integration progressed under a common market, average wages in the three countries would equalize and eliminate pressures on northern job markets. Analyze this situation using the Ethical Framework in Chapter 4. Should the task force recommend the common market? What could U.S. and Canadian firms do to maintain their competitiveness relative to Mexican firms, given Mexico’s low-wage advantage? LO.1