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    International Sanctions

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    Your boss in the U.S. home office wants to know your perspective on the following. How do international sanctions, tariffs, quotas, and trade restrictions affect international trade and costs of production? How do tariffs and sanctions on the import of auto engines into the U.S. affect production and costs at Acme? Do you agree with trade restrictions? When do you think they are successful? Why or why not?

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    https://brainmass.com/economics/international-policies/international-sanctions-127594

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    The primary aim of international sanctions, tariffs, quotas and trade restrictions is to protect the domestic industries or businesses or the nation that is levying such sanctions or tariffs. The sanctions and tariffs and trade restrictions is established to provide strategic or competitive advantage to the domestic firms and acts as a disadvantage for the foreign companies. For example, a US based company exporting goods to India will be negatively affected by import duty levied on imported goods in India because it will raise the cost of the US goods and will thus erode competitive advantages enjoyed by the US firm against local Indian companies. Similarly, trade ...

    Solution Summary

    Your boss in the U.S. home office wants to know your perspective on the following. How do international sanctions, tariffs, quotas, and trade restrictions affect international trade and costs of production? How do tariffs and sanctions on the import of auto engines into the U.S. affect production and costs at Acme? Do you agree with trade restrictions? When do you think they are successful? Why or why not?

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