SEU International Business Management Focus on NAFTA Tomato Wars Case Study

Description

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?
  • Why, despite the establishment of a minimum floor price, have imports from Mexico grown over the years?
  • Who benefits from the importation of tomatoes grown in Mexico? Who suffers?
  • Do you think that Mexican producers were dumping tomatoes in the United States?
  • 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?
  • What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers?
  • What do you think is the optimal government policy response here? Explain your answer.

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