Question

4) 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 were 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. How should your firm respond? What does this tell you about the use of targeted trade barriers?

Answer 1

Step-by-step explanation:

Analyzing the scenario of the question above, it can be understood that the targeted commercial barriers can mean an increase in costs for the company, therefore it is necessary to develop strategic solutions that do not prevent the company from producing personal computers in places with better labor costs. constructions. The question provides information that other production sites, such as Malaysia and Hong Kong, were considered, so this would be a viable and effective strategy if the production and workforce requirements were qualified and maintained the quality of the computers' production.