Who benefits from the importation of tomatoes grown in Mexico?
Critical Thinking
Read the Management Focus on, “NAFTA’s Tomato Wars,” available in your e-book (page no. 620), and answer the following questions:
1. Was the establishment of a minimum floor price for tomatoes consistent with the free trade principles enshrined in the NAFTA agreement?
2. Who benefits from the importation of tomatoes grown in Mexico? Who suffers? Give arguments in support of your answer.
3. Do you think that Mexican producers were dumping tomatoes in the United States? Give reasons.
4. What do you think will be the impact of the new higher floor price? Who benefits from the higher floor price? Who suffers? Give logics.
5. What do you think is the optimal government policy response here? Explain your answer.
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