The year is 2027. Argentina has gone through some hard times, but has made a remarkable comeback. Broad political, monetary, and economic reforms have been implemented. It is transitioning from an oil-based economy to a more diverse economy that includes manufacturing and technology companies. There is a growing middle class with increasing purchasing power. Recent years have brought an increase in manufacturing of domestic products, in export of products, and in importing products from the many global sources. There is increased confidence in the rule of law and the integrity of the judicial branch.
Gloria Mendoza is running to be elected President of Argentina. You are serving on her board of economic advisors. You are asked to analyze a key public policy question. Should her campaign support adoption of U.S.-style products liability laws in Mexico based on strict liability for defective products? 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?