Advantage of relatively low labour costs

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You are an employee of an U.S. organization that produces personal computers in Thailand as well as then exports them to the U.S. as well as other countries for sale. The personal computers were initially produced in Thailand to take advantage of relatively low labour costs and a skilled workforce. Other probable locations considered at that time were Malaysia and Hong Kong. The US government chooses to impose punitive 100% 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 do you think your firm must respond? What does this tell you about the utilization of targeted trade barriers?

Reference no: EM1399763

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