QUESTIONS CHAPTER 6

1. Do you think governments should consider human rights when granting preferential trading to countries? What are the arguments for and against taking a such positions?
A: Yes, because human rights are of great importance in all aspects and must be respected. But you need to take in count that human rights are different in other countries that are not subject to the bill of rights.

2. Whose interests should be the paramount concern of government trade policy the interests of producers (business and their employees) or those of consumers?
A: I think both should be of great importance because they must work together to reach all the goals.

3. Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade policy should business be pressuring government to adopt?
A: The strategic trade policy because it has best export tariffs and subsides, so you can get strategic effects to their development in the international market and more intervention of other countries.

4. You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the Unites States and other countries for the sale. The personal computers were originally produced in Thailand to take the advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at the time were Malaysia and Hong Kong. The U.S. government decides to impose punitive 100 percent and valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?
A: Getting a low-cost country to modify the place of manufacturing, because I think if the country where you work does not suit your needs you need to make a