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Exhibit 15-3 Prior to the Year 2000,the United States Considered

question 101

Multiple Choice

Exhibit 15-3 Prior to the year 2000,the United States considered renewal of Most Favored Nation (MFN) trading status with China annually (Most Favored Nation trading status is now called Normal Trade Relations) .Historically,legislators made threats of not renewing MFN status because of alleged human rights abuses in China.The nonrenewable of MFN trading status would likely have triggered retaliatory measures by China.The game below reflects the potential economic gains from trade in a scenario in which China chooses whether to impose trade sanctions against U.S.firms and the United States chooses whether to renew MFN status with China.
Refer to Exhibit 15-3.Assume that trade negotiators meet to discuss trade policy between the United States and China.If neither party to the negotiation is able to trust the other party,then:

Definitions:

Decision Making

Involves the process of choosing the best option from a set of alternatives to achieve a specific goal, often based on criteria and available data.

Long-term Contracts

Agreements between parties that extend over a lengthy period, often used to secure favorable terms and ensure consistent supply or demand.

Warehousing Requirements

The specific needs related to the storage of goods, such as space, security, climate control, and accessibility, determined by the nature of the products and business operations.

Supply Chain Decision

Choices made in the management of the supply chain, affecting sourcing, production, delivery, and all stages in between.