The year is 2027. Venezuela 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.

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