1. Review Chapter 7 in theGlobal Business Today textbook.
  2. View the video, “Airbus vs. Boeing” for a case study of Airbus and Boeing, highlighting the benefit of subsidies and other government support –
  3. Navigate to the threaded discussion below and answer or evaluate questions 2, 3, and 4
  4. Your initial post should be 150 to 200 words in length. Using OCLS, include two credible sources that are properly cited in APA format.


Evaluation questions

2. Whose interests should be the paramount concern of government trade policy—the interests of producers (businesses and their employees) or those of consumers? Page 219


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?


4. You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and other countries for sale. The personal computers were originally produced in Thailand to take 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 ad 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?

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