Perlas, Mary Jane DC.

BSBA 3A

Quiz on Government Policy and International Trade

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

My firm should respond by setting a plan of choice on how will we deal with the tariffs. First is
looking for another country that can manufacture personal computer but with similar labor cost. This is one
of the ways that my firm should do. Another is we may lower the price of our products and guaranteed that
these are in good quality. We may also consider exporting products in other nearby country so that the trade

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barriers can be easily avoid without looking for production facilities in expensive country like US. Trade

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barriers restrict the flow of products and services between the manufacturers and consumers. This highly

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affects the firms. Ad valorem tariffs is one of the tactics of the government to blackmail another government

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which is affects the costumers and the free market. If the increase in price of electronic products happens
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in Thailand, they need to look for another country who offers low price in personal computers.
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2. During a pandemic, whose interest should be a paramount concern of government trade policy:
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the interests of producers (businesses and their employees) or those of consumers? Explain.

The government trade policy should focus on the interest of the consumers during pandemic. This
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is because, aside from food, vitamins and medicines, people would first care about the needs of their family.
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We all know that during lockdown, people are not used to leave their houses especially children and senior
citizen. Many establishments are closed and not allowed to sell products like liquor and so on. If the
government trade priorities the interest of the producers and their employees’ people or consumers will
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suffer. If they choose to stay open during pandemic their employees will probably or most likely to catch
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virus, besides producers only exist if consumers purchase their products but since pandemic most of us is
not allowed to go outside. Maybe government trade policy considered other firm like the company whose
manufactured basic needs (canned goods, medicine, vitamins, instant food) of the consumer during
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pandemic but their concerned is still the consumers sake of needs and securities.

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