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5. You are an employee of a U.S. firm that produces personal computers in Thailand and then...

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General Management

5.You are an employee of a U.S. firm that produces personal computersin Thailand and then exports them to the U.S. and other countriesfor sale. The personal computers were originally produced inThailand to take advantage of relatively low labor costs and askilled workforce. Other possible locations considered at the timewere Malaysia and Honk Kong. The U.S. government decides to imposepunitive 100% ad valorem tariffs on imports of computers fromThailand to punish the country for administrative trade barriersthat restrict U.S. exports to Thailand. How should your firmrespond? What does this tell you about the use of targeted tradebarriers? Your answer should be no less than 300 words.

Answer & Explanation Solved by verified expert
4.4 Ratings (831 Votes)
The firm should in this case have two option to respond firstly give a thought to export to Canada or another intermediary nation and let the market go from there and secondly finding another country where the products can be manufactured in with similar cost and by doing so tariffs can be avoided Hence such targeted trade barriers can often be easily avoided without having to    See Answer
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