You are Vice President for International Sales at AgriCorp, a large trading company that exports processed foods

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You are Vice President for International Sales at AgriCorp, a large trading company that exports processed foods to Africa. You are often frustrated that African countries impose high tariffs (typically 75 percent) on processed food imports. These barriers raise AgriCorp’s cost of doing business and make your prices less competitive in African markets. But Africa suffers from widespread poverty and African governments use tariffs to raise needed revenues and achieve policy objectives. Using the concepts in this chapter and the Ethical Framework in Chapter 5, analyze the arguments for and against high agricultural tariffs in Africa. What ethical concerns do you perceive in Africa’s use of high tariffs on agricultural goods? What ethical concerns do you perceive in AgriCorp’s efforts to avoid the tariffs? How should AgriCorp respond to the tariffs?

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International Business and the New Realities

ISBN: 978-0136090984

2nd Edition

Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger

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