What would be the consideration our Customs people

| June 14, 2018

Assume that your company has established a good sales situation in country X in one of the African nations on its west coast. You regularly ship your products, say soft drinks, and your buyer makes a nice profit in his country. So, things are working out very well for all. But then country X wants to expand its export of cloth, say cotton, to the United States and because U.S. has a very large cotton industry the industry puts pressure on our government to place limits on the cotton imports from country X as country X’s products would be imported at such a lower price that it would create a very serious competition to the U.S. cotton manufacturers. Country X now says to the U.S. customs that if they put restrictions on their cotton they will increase the import tariff on your soft drinks that will cut you profits in half. 1) What would be the consideration our Customs people and/or Department of Commerce officials would have to consider?2) What kind of negotiations (between what level of officials) would most likely result? 3) What would be the considerations for resolving the conflict? 4) How do you think the issue could (would) be resolved?

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