Learning Outcomes:
• Discuss the reasons for and methods of governments’ intervention in trade (Lo 1.2)
• Identify and evaluate the significant trade agreements affecting global commerce (Lo 1.1)
• Carry out effective self-evaluation through discussing economic systems in the international business context (Lo. 3.1)
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)
1. Do you think that Mexican producers were dumping tomatoes in the United States? Discuss.
(mark:1)
2. Was the Commerce Department right to establish a new minimum floor price rather than scrap the agreement and file an antidumping suit? Who would have benefited from an antidumping suit against Mexican tomato producers? Who would have suffered?(marks:3)
3. What do you think is the optimal government policy response here? Explain your answer.(mark:1)
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