Assignment Question(s): (Marks: 5) 1. Was the establishment of a minimum floor price for tomatoes consistent with the free trade principles enshrined in the NAFTA agreement? 2. Who benefits from the importation of tomatoes grown in Mexico? Who suff

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Assignment Regulation:

  • All students are encouraged to use their own word.
  • Assignment -2 should be submitted on or before the end of Week-11 in Black Board only.
  • This assignment is an individual assignment.
  • Citing of references is also necessary.

Assignment Structure:

A.No

Type

Marks

Assignment-2

Critical Thinking

5

Total

5

Learning Outcomes:

  • Identify major components of international business management (CLO 1.1)
  • Discuss the reasons for and methods of governments’ intervention in trade (CLO 1.4)
  • Understand processes of exporting and importing (Lo:7)

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?
  • Who benefits from the importation of tomatoes grown in Mexico? Who suffers? Give arguments in support of your answer.
  • Do you think that Mexican producers were dumping tomatoes in the United States? Give reasons.
  • What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers? Give logics.
  • What do you think is the optimal government policy response here? Explain your answer.

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