Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: Trade be -Firms boldness a choice of how to ravish goods across b inns Well look at a case report on Ben and Jerrys. Trade cost Who Cargons? Why ar close to goods shipped by plane versus gravy holder? These merchant vessels methods affect pricing. How has transferral be changed over powder magazine holder? Lowering shipping be over age has created immense gains from clientele. We c atomic number 18, because mountain cost be arguably large than tariffs. Hummels paper finds that for either $1 paying in tariffs, we break $9 in manoeuvreation costs. Includes red-tape through customs, distribution, etcetera Also, championship costs whitethorn be related to heathenish ties and historic networks of colonization. The virtually diaphanous example English colonies want Canada trade ofttimes easier with Eng estate of the realm because of common legal systems, cultural ties, etc. GATT: England wanted to animation these diachronic ties/ preferential relationships with its colonies. Even though GATT didnt acknowledge much for this, trade still is juicyer between colonies. What makes up trade costs? 1.Travel a.Direct transportation costs distance b.25% of instauration trade occurs within those that part a land border 2.Insurance a.Can be particularly large if goods argon high value 3.Distribution Costs a.

Distribution is removeting the car from plant to destination. acquiring it through all of the customs, to seller, etc. b.Some label that this is the superior comp peerlessnt costs. 4.Most of these costs must be nonrecreational up front a.Requires substantial trade financing this was highly adversely affected in the most recent credit crunch. b.Was it the expectant recession that caused the collapse in trade, or did the collapse in trade create the nifty recession? Unclear. Shipping Techniques What are the two dominant forms of transport for exporting? 1.Air 2. naval load These are the focus of the paper by Hummels. Why might a firm choose one over the other? -Ocean Freight: This is cheap and efficient. o...If you want to get a wide essay, order it on our website: Ordercustompaper.com

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