Chapter 10, Problem 6BIC

Given that Thai roller blade manufacturers located in Thailand have begun targeting the U.S. roller blade market, how do you think Blades’ U.S. sales were affected by the depreciation of the Thai baht? How do you think its exports to Thailand and its imports from Thailand and Japan were affected by the depreciation?

QUESTION 1: Which groups benefited most from China imposing an export quota on rare earth metals? Did it give the Chinese domestic manufacturers a significant cost advantage? Did it result in dramatically increased quality and environmental standards? QUESTION 2: Given that 97 percent of rare earth metal production is now done in China, an increase from 27 percent to 97 percent between 1990 and 2010, do you think countries such as Australia, Canada, and the United States should reconsider their environmental restrictions on the production of such metals? QUESTION 3: The restrictions imposed by China on rare earth metals has resulted in some companies (e.g. Toyota, Renault, Tesla) starting to look for alternatives. They plan to use parts that do not include rare earth metals. Is this a good solution?

Which of the following best represents the primary economic and financial benefit to the U.S. from NAFTA?   It led to increased tariffs on U.S. exports to Canada and Mexico.     U.S. consumers had access to a wider variety of products.     It resulted in the relocation of major U.S. corporations to Europe.    The U.S. benefited from low-price manufacturing, low-priced labor, and reduced shipping and logistics costs.