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