Legislation is being considered to dramatically increase


Identify the benefits vs the cost for both scenarios

Scenario 1

Legislation is being considered to dramatically increase the number of inspections on containers entering U.S. ports from foreign origins. The purpose of the inspection isto reduce the likelihood of terrorist activity that could occur by using a container to holdweapons or explosives that are meant to harm U.S. citizens. The inspection wouldrequire physically unloading the container at the port and inspecting its contents. The rationale behind increasing the number of containers inspected is the resulting reductionin the probability of a terrorist attack on U.S. soil. Critics of this legislation argue thatwith the thousands of containers entering U.S. ports every, increased inspection activity would increase congestion at the ports, slow down the movement of goods into theUnited States, and add costs to carriers and shippers.

Scenario 2

The federal government passed legislation requiring all motor carrier tractors purchased after 2007 to meet more stringent EPA guidelines for engine emissions of particulate matter. These new guidelines require new engine technology that has increased thecost of these engines by over $10,000. Motor carriers are critical of these guidelines, arguing that the increased engine cost and resulting increase in maintenance costs areprohibitive and are difficult to pass on to customers in the form of higher prices. Propo-nents of these guidelines argue that cleaner engine exhaust is better for the environmentand, therefore, a benefit to the general public.

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Business Management: Legislation is being considered to dramatically increase
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