The Suspension Agreement with Mexico is a great example of that issue. Previously done studies have discussed the agreement as having far-reaching effects, such as the enhanced making of the Mexican tomato paste along with more trade with Canada.
But, not much study has been done regarding the direct effects of the agreement on welfare. The theoretical model reached in this paper assists in demonstrating these direct effects. With trade barriers distorting free trade, the various types of barrier affect welfare in various different manners.
There has been a vast study regarding the effects of tariffs or duties for dumping, but not so much on the effects of the minimum price. The effect of minimum price on welfare is different as compared to antidumping duties. If America started anti-dumping duties, their government would get revenue, and the quota rent for Mexican producers would be lost.
This war has lasted a long time and does not look like stopping anytime soon. Already, the new agreement has been challenged. While it was anticipated that NAFTA would usher in a new era of free trade, the American government’s policies for tomatoes continue to err on the side of security for Floridian growers. As
To ensure that the export of tomatoes successfully, it is necessary to create a strategy well thought out and planned export. An export strategy will help define the goals, managing strategic market sectors and evaluate the resources available to ensure quality service to new markets, among others.
They also require financial resources and ability to finance the development of the export market. In all export strategy, estimates of the necessary budget should be made to develop the export market during the first years of the process. A marketing strategy can be developed in six steps:
- The first step is understanding of business and how export fits into the overall plans.
- The second step is a careful assessment of the current business company.
- The third step is to seek new markets abroad.
- The fourth step is essential and is to set quantitative targets as well as qualitative.
- The fifth step includes a detailed definition of the export strategy in relation to all aspects of the export process.
- Finally, the sixth step is to develop the action plan.