Suppose a Recent Study Shows That in Country A, Consumers

question 19

Essay

Suppose a recent study shows that in country A, consumers pay an average of about $169,000 per job per year maintained by import protection. Given that these employees earned much less than $169,000 per year, it would be much cheaper to simply pay these workers not to work and impose no import restrictions. Why do you think that, in spite of the fact that there is a net welfare loss, the government of country A has maintained these barriers?

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Definitions:

External Environment

Factors outside an organization that can affect its performance, such as economic conditions, competition, and regulatory policies.

Organizational Resources

The assets, capabilities, processes, information, and knowledge that an organization controls and can use to accomplish its goals and objectives.

Business Strategies

Comprehensive plans and actions that guide businesses in achieving their goals, responding to competitive environments, and fulfilling market demands.

Corporate Strategies

The comprehensive approaches that businesses adopt to achieve their long-term objectives and secure a competitive advantage.