Explain utilization of targeted trade barriers

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Reference no: EM13105668

You are an employee of a U.S. company that produces personal computers in Thailand as well as then exports them to the United States and other countries for sale. The personal computers were initially produced in Thailand to take advantage of relatively low labour costs as well as a skilled workforce. Other probable locations considered at the time were Malaysia as well as Hong Kong. The U.S. government decides to execute punitive 100 percent ad valorem tariffs on introductions of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How must your firm respond? What does this tell you about the utilization of targeted trade barriers?

Reference no: EM13105668

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