Final answer:
SAB should examine their off-shore purchasing policy given the legitimate business concerns about consumer safety, environmental protection, and national security. Such a review aligns with broader considerations of imposing higher safety standards on imported goods to protect national interests and encourage sustainable business practices.
Step-by-step explanation:
Whether the company should examine its off-shore purchasing policy, even if the products are sourced from the U.S. can be tied to broader questions and concerns regarding international trade and business ethics. For instance, imposing higher safety standards on imported goods compared to those that exist in the country of production can be seen as both a measure to ensure consumer safety and a means to protect domestic industries from unfair foreign competition.
In addition, the aspect of environmental and national security concerns is relevant. Countries may implement trade restrictions to prevent firms from evading stringent environmental protection laws, as well as to avoid over-dependence on key imported products such as oil, which could be a risk during times of conflict.
Thus, when SAB examines its off-shore purchasing policy, it may consider these factors to determine if its approach aligns with national interests, consumer safety, and sustainable business practices. The demand and supply model's application to international trade is crucial for understanding the potential impacts of such a policy review.