Quiz 2 INB 300
Answering the following two questions:
1. You are an employee of an U.S. firm that produces personal computers in
Thailand and then exports them to the U.S. 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 that time were Malaysia and Hong Kong. The U.S. government
decides to impose punitive 100% 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 do you think your firm should respond? What does
this tell you about the use of targeted trade barriers?
2. You are the international manager of a US business that has just invented a
revolutionary new personal computer that can perform the same functions as
existing PCs but costs only half as much to manufacture. Several patents protect
