Free trade Essays Video
Gains from Free Trade Free trade EssaysFree trade Essays - opinion you
If, as the result of free trade, some American workers lose their jobs, this can hardly be a sensible economic strategy for our country. Indeed, we will maximize economic opportunity and the rate of economic growth for the U. Consulting your text and any other source you would care to cite, and prepare your answer using the word processor of your choice. Get Professional Assignment Help Cheaply Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
The imported goods are therefore less preferred and it becomes less profitable to continue importing thus discouraging it Anderson The case in question presents a percent ad valorem tariff as the tradw barrier which the U. S adopts as a retaliatory measure against Thailand which has put in place administrative trade barriers aimed at limiting imports from U.
S firm producing from Thailand this is going to affect operations in that it is going to be expensive to import Free trade Essays materials from U. S which increases the cost of production.
S market which will lower the profit margins. Nevertheless, the company still has chances to continue importing, producing and exporting profitably if a good plan is adopted. Possible Alternatives The firm can adopt a local raw material sourcing strategy where all materials needed to manufacture the computer products are sourced internally. This will help reduce the cost of production thus increasing the profit margin by escaping charges which might be imposed by Thai government on importation from U. The firm may also think of exporting the finished goods to other markets where there are no barriers thus avoiding the U. S extreme tariffs. The firm also has an alternative to vacate operations to the Free trade Essays, U. S, and produce and sell locally if the production efficiency at Thailand cancels out with the tariff imposed by U.
S on export. Pros and Cons for the Alternatives Purchasing raw materials internally from Thailand may be expensive as there are no mass producers of computer components and this might make the cost of production even higher. Vacating operation back to U. S may also be Free trade Essays due to cost of reconstruction although this may be a good idea since this is where the market is and the firm still has an option of importing labor from Thailand.
Free and Fair Trade or Budgetary Issue
Seeking for alternative market may require formulation of a new marketing strategy and at first the firm may experience reduction in sales Anderson However, this might emerge the best alternative Free trade Essays due cause as most developing countries relies on imported computers and electronic goods. The world market is growing and the company will eventually continue operating profitably even without U. S and its punitive ad valorem Free trade Essays. Anticipated outcomes The efficiency is expected to increase if the firm succeeds to evade the trade barriers put in place by U. S and Thailand. The firm is going rrade develop better relationship with Thai government if it stops trading with the U. S and it will be treated like any other local industry thus likely to enjoy protection from the government.
Possible Alternatives
Expanding to new markets is expected to lead to discovery of new market niche with less competition and the firm will eventually increase its sales and raise its profits Anderson This will consequently lead to growth and development of the firm. Conclusion Targeted barriers are discriminative and retrogressive click the economy. They hamper the efficiency of companies since company cannot source raw materials alt lowest price or sell the final products at the best places. They Free trade Essays trade wars which decreases economic activities of the nations involved.
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They Free trade Essays the forces of demand and supply thus discouraging fair competition which is the driving force to innovation and efficiency Irwin Targeted barriers should therefore be discouraged and government should avoid enacting protectionist policies. References Anderson, K. The challenge of reducing subsidies and trade barriers. Irwin, D. Trade policy disaster: Lessons from the s.]
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