International Business

Answer the following questions in paragraph format. Each question needs to be answer in its own paragraph. Please number the answer according to the question number.

No outside sources can be used part from the sources provided below. Please see attached PDF files for short version of the reading.

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.

ONLY Sources to be used are the following:

E. Malkin, Mexico Finds Unlikely Allies in Trade Fight, The New York Times, December 25, 2012, p. B1; S. Strom, United States and Mexico Reach Tomato Deal, Averting a Trade War, The New York Times, February 3, 2013; J. Margolis, NAFTA 20  Years  After:  Floridas  Tomato  Growers  Struggling, The World, December 1, 2012.

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