MGT 321 Saudi Electronic University NAFTAs Tomato Wars Discussion

• The Assignment must be submitted on Blackboard (WORD format only) via allocatedfolder.

• Assignments submitted through email will not be accepted.

• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

• Students must mention question number clearly in their answer.

• Late submission will NOT be accepted.

• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

• Submissions without this cover page will NOT be accepted.

Assignment Regulation:

• All students are encouraged to use their own word.

• Assignment -2 should be submitted on or before the end of Week-11 in Black Board only.

• This assignment is an individual assignment.

• Citing of references is also necessary.

Assignment Structure:

Learning Outcomes:

• Identify the major components of international business management (Lo 1.2)

• Discuss the reasons for and methods of governments’ intervention in trade (Lo 1.7)

• Identify and evaluate the significant trade agreements affecting global commerce (Lo 1.8)

• Carry out effective self-evaluation through discussing economic systems in the international business context (Lo. 3.6)

Critical Thinking

Read the Management Focus on, “NAFTA’s Tomato Wars,” available in your e-book (page no. 620), and answer the following questions:

Assignment Question(s):(Marks: 5)

1. Was the establishment of a minimum floor price for tomatoes consistent with the free trade principles enshrined in the NAFTA agreement?

2. Why, despite the establishment of a minimum floor price, have imports from Mexico grown over the years?

3. Who benefits from the importation of tomatoes grown in Mexico? Who suffers?

4. Do you think that Mexican producers were dumping tomatoes in the United States?

5. Was the Commerce Department right to establish a new minimum floor price rather than scrap the agreement and file an antidumping suit? Who would have benefited from an antidumping suit against Mexican tomato producers? Who would have suffered?

6. What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers?

7. What do you think is the optimal government policy response here? Explain your answer.

Answer:

1.