Imagine that the year is 2037. Ecuador has gone through some hard times but has made a remarkable comeback by implementing some broad political, monetary, and economic reforms. It is transitioning from an oil-based economy to a more diverse economy that includes manufacturing and technology companies. A growing middle class has increasing purchasing power. Recent years have brought an increase in manufacturing domestic products, exporting products, and importing products from many global sources. Citizens have increased confidence in the rule of law and the integrity of the judicial branch.

Mara Garca is running to be elected President of Ecuador. You are serving on her board of economic advisors and have been asked to analyze a key public policy question. Should her campaign support the adoption of U.S.-style products liability laws in Ecuador based on strict liability for defective products?

In a memo to Ms. Garca with your recommendations, identify and analyze specific benefits and risks in the areas of public health, economic growth, and political risks. What anecdotes can be used during the campaign to promote the policy? What are likely criticisms from political opponents and the business community, and what are the best responses to those criticisms?

analysis should hit on the key issues of:

• the campaign's support of adoption of U.S.-style products liability laws;
• identification and analysis of specific benefits and risks in public health, economic growth, and political risks;
• anecdotes that can be used during the campaign to promote the policy; and
• likely criticisms from political opponents and the business community and responses to those criticisms.