MGT 321 SEU Nafta as Tomato Wars Internation Trade Discussion

Read the Management Focus on, “NAFTA’s Tomato Wars,” available in your e-book (page no. 620), and answer the following questions:

• Was the establishment of a minimum floor price for tomatoes consistent with the free trade principles enshrined in the NAFTA agreement?
• Why, despite the establishment of a minimum floor price, have imports from Mexico grown over the years?
• Who benefits from the importation of tomatoes grown in Mexico? Who suffers?
• Do you think that Mexican producers were dumping tomatoes in the United States?
• 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?
• What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers?
• What do you think is the optimal government policy response here? Explain your answer.