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

I don’t know how to handle this Management question and need guidance.

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.