Minimizing Trade Barriers (Scenario)
National Appliance Corporation (NAC) needs to build a new manufacturing facility to meet the increasing demand for professional-grade appliances. NAC managers are considering building the facility in Mexico but are hesitant because of the high tariffs involved. Another possible location for the facility is India; however, the country also imposes high tariffs. Wherever NAC builds a plant, parts will need to be imported from other nations.
-Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?
A) Has NAC engaged in dumping in the past?
B) How would appliance parts and finished products be categorized when passing through customs?
C) Is employee empowerment culturally favored in Mexico and India?
D) What entry strategies are available in both countries that would allow NAC to minimize import barriers?
Correct Answer:
Verified
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