Assignment Questions
Do you think governments should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position?
Whose interests should be the paramount concern of government trade policy: the interests of producers (businesses and their employees) or those of consumers?
Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade policy should business be pressuring government to adopt?
You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at the time were Malaysia and Hong Kong. The U.S. government decides to impose punitive 100 percent ad valor em tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?
Reread the Management Focus “Protecting U.S. Magnesium.” Who gains most from the anti dumping duties levied by the United States on imports of magnesium from China and Russia? Who are the losers? Are these duties in the best national interests of the United States?
