MGT 321 Saudi Electronic University NAFTA Tomato Wars Discussion

Instructions – PLEASE READ THEM CAREFULLY

• The Assignment must be submitted on (WORD format only).
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation.
• Students must mention question number clearly in their answer.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Critical Thinking

Read the Management Focus on, “NAFTA’s Tomato Wars,” available in attachment, and answer the following questions:

Assignment Question(s):

• 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.