The case study indicates the complications in importing the tomatoes from Country M. The impact of importing and trade on the both sides are explained in this case. NAFTA (Continent NA free trade agreement) came into effects. The tariff on import of Country M was dropped. Country U growers thought that there will be a huge loses because of Country M’s counterpart. So growers of Country U lobbied the government for a minimum floor price for the Country M’s tomatoes in order to make the price of Country M to fall. But this does not protect the growers of Country U. Before the effects of NAFTA Country M produces 800 million but now this has been increased to 2.8 billion pounds in the year 2011. This made Country U to get the protection of import to survive. They also forced commerce department to scrap the floor price agreement and to make a case that Country M was dumpling the tomatoes in Country U. This made many players to get angered including the importers of vegetables and many others. Thus the commerce department established a new agreement with country M to increase the price floor to form different pricing schemes. To discuss: Whether commerce department has the right to establish a new minimum floor price, rather than the scrap the agreement and file an antidumping suit and the beneficiaries and sufferers against Country M’s tomato producers. Introduction: NAFTA (Continent NA free trade agreement) is the agreement which is signed by the Country C, Country M, and Country U to have a free trade among the three countries.

Question

Want to see the full answer?

Answer 1

Question

Chapter IC, Problem 9.5CDQ

Summary Introduction

Case summary:

The case study indicates the complications in importing the tomatoes from Country M. The impact of importing and trade on the both sides are explained in this case. NAFTA (Continent NA free trade agreement) came into effects. The tariff on import of Country M was dropped. Country U growers thought that there will be a huge loses because of Country M’s counterpart.

So growers of Country U lobbied the government for a minimum floor price for the Country M’s tomatoes in order to make the price of Country M to fall. But this does not protect the growers of Country U.

Before the effects of NAFTA Country M produces 800 million but now this has been increased to 2.8 billion pounds in the year 2011.

This made Country U to get the protection of import to survive. They also forced commerce department to scrap the floor price agreement and to make a case that Country M was dumpling the tomatoes in Country U.

This made many players to get angered including the importers of vegetables and many others. Thus the commerce department established a new agreement with country M to increase the price floor to form different pricing schemes.

To discuss: Whether commerce department has the right to establish a new minimum floor price, rather than the scrap the agreement and file an antidumping suit and the beneficiaries and sufferers against Country M’s tomato producers.

Introduction:

NAFTA (Continent NA free trade agreement) is the agreement which is signed by the Country C, Country M, and Country U to have a free trade among the three countries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

2. Why did Wal-Mart face opposition from trade unions and other government departments over its acquisition of Massmart? Do you think the opposition coalition had a valid point in p Oposing the deal? Justify your answer.

What are the costs and benefits of FDI inflows for a host country such as Argentina? Will foreign firms such as Repsol make decisions in the best interest of Argentina? As a Spanish manager at YPF, how would you cooperate with the Argentine government to expropriate YPF? If you were an Argentine manager at YPF, would your action be different? If you were a member of Argentina’s Congress, would you vote to support Fernández’s renationalization bill for YPF? Defend your vote. If you were a member of the arbitration panel assembled by ICSID (which would require you to come from a neutral country—neither from Argentina nor Spain), how much compensation would you think Argentina’s government should pay Repsol?

After the Seattle 1999 World Trade Organization (WTO) Ministerial Conference, in the next two years, large anti-globalization demonstrations rocked the International Monetary Fund and World Bank in Washington. Describe the role of WTO with respect to the following 7 aspects: knowledge of WTO/GATT, fostering trade liberalization, abolishing tariffs, increasing transparency, seeking resolutions, improving communication within trading blocs, controlling export subsidies, improving national welfare and competitiveness of developing countries