Question

Jackie is the owner of a laptop computer manufacturing company in New Zealand. She is trying to figure out how the company can begin selling computers in Russia. Jackie believes that the company could sell millions of laptops in Russia Jackie has discovered that Russia has very high tariffs on foreign laptops that would make her companies to Russian customers. Russia wants to protect their laptop manufacturers. Is there another legal way for Jackies company to sell laptops and Russia without paying the high tariffs?

a. Yes, if a Russian company or citizen bought the controlling interest in Jackie's New Zealand laptop company
b. Yes. because the New Zealand is not a G20 country, so it will not have to pay the Russian tariffs, because only G20 countries pay tariffs to BRICS countries c. No, there is no legal way for Jackie's New Zealand company to do business in Russia without paying the high tariff
d. Yes, the company could build a factory in Russia, then the laptops would not have to pay the Tariff
e. no, because they would have to bribe Russian governmental officials, which would be illegal in New Zealand

Answer 1

Jackie's New Zealand-based computer company can avoid Russian tariffs legally by establishing a manufacturing plant in Russia, thus classifying their laptops as domestically-produced goods. Historical precedents show companies relocating production due to trade barriers.

Step-by-step explanation:

The question posed regards Jackie, the owner of a laptop computer company based in New Zealand, looking for legal means to sell her products in Russia without paying high tariffs intended to protect domestic manufacturers. The potential solution for Jackie's company is option d: Yes, the company could build a factory in Russia, then the laptops would not have to pay the tariff. This is a legal and strategic way to bypass tariffs while also possibly benefiting from local manufacturing incentives and reducing shipping costs. By establishing a local manufacturing presence, the company laptops would be considered domestic products, thus avoiding the import tariffs intended for foreign-made laptops.

As seen in historical examples, such as Apple, Toshiba, and IBM, companies often move or expand production facilities to other countries due to unfavorable domestic conditions like high antidumping taxes. These decisions are not solely based on the reduction of costs, but also on the intricate landscape of international trade policies, tariffs, and market access.