Discuss the problems that these governments face in balancing the needs of their citizens with the long-term quest for economic development

You are the U.S. Ambassador to Malaysia. In order to become a major export platform for the semiconductor industry, Malaysia s government not only offered tax breaks but also guaranteed that electronics workers would be prohibited from organizing independent labor unions. The government decreed that the goal of national development required a “union-free” environment for the “pioneers” of semiconductors. Under pressure from U.S. labor unions, the Malaysian government offered a weak alternative to industry unions-company-by-company “in-house” unions. Yet as soon as workers organized one at a Harris Electronics plant, the 21 union leaders were fired and the new union disbanded. In another instance, when French-owned Thomson Electronics inherited a Malaysian factory with a union of 3,000, it closed the plant and moved the work to Vietnam. Newly industrialized nations such as Malaysia feel that their futures depend on investment by multinationals. Yet their governments are acutely aware that in the absence of incentives such as a “union-free” workforce, international companies can easily take their investment elsewhere. Discuss the problems that these governments face in balancing the needs of their citizens with the long-term quest for economic development. As the ambassador, what advice do you give Malaysian business and government leaders? Can you think of examples from other nations that can help you make the case for local unions?