MGMT 3225 Lecture 6: Discussion 3
Document Summary
From my perspective, a government should consider protecting consumers and human rights when granting preferential trading rights to other countries. Before offering countries reduced tariffs or subsidies take into consideration the consequences associated with these choices. Also, it allows the country importing goods to for once think about the consumer. Throughout history trade policies have rarely benefited the consumer, most policies are pro-producer and anti-consumer. Consumers are always paying higher prices because of the tariffs and quotas put in place. Discuss the pros and cons of each option and suggest a course of action to your ceo: the pros of licensing an indian firm to manufacture are not having to worry about the cost/risk involved. This means you don t have to worry about any of the cost associated with manufacturing the goods like transportation and labor. The risks involved include having to deal with potential tariffs or quotas imposed by the government.
