Business You are an employee of an U.S. firm that produces personal computers in Thailand and then exports them to the U.S. 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 that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How do you think your firm should respond? What does this tell you about the use of targeted trade barriers?

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#2's comment seems the best option here; export to Canada or another intermediary nation, and let the market go from there. However, you might also consider lowering the prices on your goods. If you can guarantee excellent goods at better prices, all the trade markets will vie for your attention. Even if the U.S. wants to punish the trade restrictions, they will always buckle for cheap and well-made goods -- and more often, cheap and poorly-made goods. ;)

I would suggest finding another country which the computers can be manufactured in (with similar low labor costs). By doing so, you may be able to forgo the tariffs. Outside of that, I would support the other options offered above.

Trade barriers by their very nature restrict the flow of goods and services between producer and consumer.  Typically, when such restrictions are in place, businesses will end-run government restrictions; in this case, exporting the computers to Canada or another intermediary that would then export them to the...

(The entire section contains 12 answers and 847 words.)

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