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Question
The Generalized System of Preferences (GSP) which some countries grant to a number of nations around the world. You probably have never heard about it and therefore need to educate yourself on what GSP is all about, which is precisely what this assignment aims to achieve. you need to focus on the EU and US GSP, i.e., on the various tariff privileges granted by the EU and the US to less developed countries. Once you have a good grasp of what these are, you need to answer the following question.
Assume that you are the manager of a reading glass company from Germany operating a plant in Thailand and exporting most of its production to the US and the EU. Further assume that you have been benefiting from the EU and US GSP policies and have been exporting reading glasses tariff-free, which puts you at a competitive advantage. Finally, assume that as of March 1, 2023, the EU will no longer grant Thailand GSP benefits on a number of products, including reading glasses, which means that as of March 1, 2023, the EU will impose a 20% tariff on reading glasses imported from Thailand. The EU made the announcement on January 1, 2022.
Explain what in your opinion your company can/should do to deal with the imposition of tariffs as of March 1, 2023.
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