How Bruno’s decision to increase the use of robots and the general trend of increasing automation could affect in the future the following:

• Angela’s bargaining power,
• Angela’s real wage, and
• Bruno’s profit.
• (You must refer to Figure 3 in your discussion. The description of Figure 3 can be found in Unit 4 Section 12 of the prescribed textbook.)
• 

Does Bruno’s decision to use more robots result in a fairer outcome? Discuss in 150-200 words based on your answer for Question 4. Your discussion must use any TWO of the following ideas. [10 marks]

• substantive judgment of fairness
• procedural judgment of fairness
• consequentialist approach
• deontological approach
   

Automation, broadly referring to the adoption of machines and computers in the production process has become increasingly more popular across many sectors and countries. For example, the market for industrial robots has experienced a dramatic expansion in the last couple of decades, as shown in Figure 1. Figure 1 Annual shipments of industrial robots worldwide (thousand units) 630 553 421 381 204 254 Source: Modified from Exhibit 221 2, McKinsey & Company, Industrial Robotics: Insights into 178 166 159 the Sector's Future Growth 120 111 114 113 121 97 Dynamics, July 2019. Note: Forecast 2018-2021 2000 2005 2015 18F 19F 20F 202F 2010 At the same time, the prices of labour and robots have been changing. The case of the US manufacturing sector in the last few decades is shown in Figure 2. Figure 2: Robot prices and labour compensation in manufacturing in the US (1990=100)