• Identify major components of international business management (CLO 1.1)
• Discuss the reasons for and methods of governments’ intervention in trade (CLO 1.4)
• Understand processes of exporting and importing (Lo:7)
Critical Thinking
Read the Management Focus on, “NAFTA’s Tomato Wars,” available in your e-book (page no. 620), and answer the following questions:
Assignment Question(s): (Marks: 5)
- Was the establishment of a minimum floor price for tomatoes consistent with the free trade principles enshrined in the NAFTA agreement?
- Who benefits from the importation of tomatoes grown in Mexico? Who suffers? Give arguments in support of your answer.
- Do you think that Mexican producers were dumping tomatoes in the United States? Give reasons.
- What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers? Give logics.
- What do you think is the optimal government policy response here? Explain your answer.
Answer:
1.
2.
3.
4.