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Questions:
1. Do you agree with the 11th U.S. Court of Appeals ruling that cleared Chiquita of any liability for the victims killed by the paramilitary group that Chiquita funded? Construct an ethical argument that supports your view.
2. Using each of the four methods of ethical reasoning (see Figure 5.6), was it ethical or not for Chiquita to pay the terrorist organization when payments were demanded in the early 2000s?
3. Should the U.S. ban against supporting terrorist groups, imposed after the September 11, 2001, attacks in the United States, be applied in this situation? Why or why not?
4. Is there anything that Chiquita could have done to protect its employees adequately without paying the terrorists?
5. Should Chiquita be assessed a penalty that puts the firm out of business for their actions?
Suppose there is a permanent rise in per-capita taxes, τ . Describe the transition path of and steady-state effects on capital, consumption and debt.
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