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Use of targeted trade barriers

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Reference no: EM133177046

Imagine you are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and other countries for sale. 

The personal computers are originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at the time were Malaysia and Hong Kong. 

The U.S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. 

  • What does this tell you about the use of targeted trade barriers? 
  • If you were the CEO of this company, what would you do?

Reference no: EM133177046

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