Reference no: EM131273245

Consider a scenario in which a tariff or a limit on imports is imposed on an importer which is in the business of integrating subsystems it purchases abroad into a more complex IT product that it then places on the market. Assume further that having to pay the tariff or sustain the loss of limited imports reduces the research and development funding on the end product of the importing-organization. The result is a lost opportunity cost entailed by a regulatory intervention that interferes with product innovation. Then how might Garrett’s CMROAT tool be used (or modified and used) in such as way as to help account for the impact of lost opportunities so as to direct management attention to the avoidance of interventions that are most threatening to potential development of capital?