Labor and Globalization Class- Policy-Maker Simulation Paper

General guidelines: Single spaced.12 point Times New Roman font, one inch margins. Three numbered pages including references (text must reach page three).At least two direct quotes with proper ASA-format citations (quotes must be embedded in sentences of your own).At least one journal or book source with proper ASA-format reference.
Specific guidelines:Imagine you are a high-level policymaker in a newly formed country named Hyrule. Your portfolio includes both labor and general economic issues, but with a special focus on protecting the wellbeing and productivity of the country’s working population. Write an essay detailing the Hyrulian state’s options on each issue listed below, being sure to compare at least two possible alternative stances the state can take on each issue
Note: Hyrule is a new country breaking away from an existing developed country, and thus already has highly developed economic, political, and cultural institutions. Analyze the issues below from the perspective of a developed country, unless otherwise specified.
-Profit- vs Wage-led: Briefly describe two competing distributional policies that the state can implement. What are the risks and benefits of each? Which would be a better fit for Hyrule, especially in regards to maintaining the social strength and economic wellbeing of Hyrule’s workers?
-Unemployment: Describe the two competing stances the state can take in regards to unemployment. Do they rest on different assumptions, and if so, what are these assumptions? How is each stance implemented? Which would be a better fit and why? Hyrule has a large trade deficit. According to Baker, how does this deficit affect the state’s ability to maintain full employment? If the state chooses to take steps to reduce the trade deficit, what political obstacles can they expect to encounter?
-Class alliances and struggle. What issues should you consider in terms of alliances/conflict between the “two great classes” (i.e. owners and workers)? What steps can the state take to create or maintain some measure of cooperation between the classes? What about class divisions within the capitalist class between producers and rentiers?-Inflationo What are the possible stances that the state (and the central bank) can take with regard to inflation? What are the risks or benefits of each? What class benefits from each?
-Offshoring and outsourcing: Describe two competing stances that the state can take in regards to offshoring and outsourcing. What are the problems with the “conventional” explanation of offshoring? How can the state encourage offshoring/outsourcing (if it chooses to do so), and how can it be discouraged? o Now include a short analysis from the viewpoint of Trodain, an impoverished and undeveloped country that is one of Hyrule’s trading partners. Trodain is quickly becoming a major destination for foreign direct investment (FDI) from Hyrule and other developed countries. What are the risks facing Trodain? How might offshoring be used as a “stepping stone” for Trodain’s development? What qualities should the country seek to cultivate in order to maximize the chance that receiving FDI leads to development?
-Immigration: Describe the possible impacts of large amounts of immigration on Hyrule. If immigration is allowed, what kinds of issues or risks should the state watch out for? Be sure to touch on both “economic” and “social/political” issues.

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