Economics of Globalization
ECO 4451Economics of Globalization Answer the question
Use the following information to create a set of recommendations.
https://www.usitc.gov/tata/
https://www.cbp.gov/newsroom/
https://www.politico.com/
https://www.foxnews.com/
You have been hired by the owner of a group (1,200) of unique grocery stores in multiple
countries that sell both local products (produce, meat, dairy, eggs) and hard to find imported
products (exotic fruits and vegetables). They store depends on both the availability and
affordability of both imported and domestic products. The tariffs introduced during the current
environment has the owner extremely concerned with the future profitability of the grocery
stores. During the first rounds of tariffs, the store owner absorbed the increase in costs without
raising prices. However, if the tariffs increase anymore the stores will have to increase prices,
resulting in few sells and less profit.
The store has asked you to come up with two sets of recommendations: (1) what public stance
should the owner have about the current environment of tariffs, (2) what the store should do to
minimize the exposure to the risk of loss due to the tariffs. These are two distinct
recommendations and should be discussed separately in your document think Part 1 and Part
2. This assignment will require some delicate thought on both parts.
Answer preview
Tariffs on imported and domestic goods significantly influence the profitability of a business. In the case study, the owner of the grocery should have information on tariffs in the current business environment and the necessary strategies to minimize the risk of making losses due to tariffs. For instance, understanding trade wars across countries are essential. Information on trade statistics and ways to reduce exposure to the risk of making losses due to tariffs is necessary
Recommendations on What Public Stance Should the Owner Have About the Current Environment of Tariffs
The owner should have prior knowledge of protectionism and competitiveness across nations in the current business…
(550 words)