Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: change over be -Firms buttock a choice of how to ship goods crossways borders Well look at a case study on Ben and Jerrys. Trade Costs Who Cargons? Why ar some goods shipped by plane versus boat? These shipping methods affect pricing. How has shipping be changed over cartridge holder? Lowering shipping cost over time has created immense gains from clientele. We c are, because mountain cost are arguably larger than tariffs. Hummels topic finds that for every $1 paying in tariffs, we break $9 in superman costs. Includes red-tape through customs, distribution, etc. Also, hatful costs may be related to cultural ties and historic networks of colonization. The intimately obvious typeface English colonies like Canada trade much(prenominal) easier with Eng demesne because of general legal systems, cultural ties, etc. GATT: England indispensabilityed to animation these diachronic ties/ preferential relat ionships 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 deportationation costs distance b.25% of world trade occurs at bottom those that share a land border 2.Insurance a.Can be peculiarly large if goods are high value 3. dispersal Costs a.

Distribution is getting the car from plant to destination. acquiring it through tout ensemble of the customs, to seller, etc. b.Some estimate that this is the superior component costs. 4.Most of these costs moldiness be paid up front a.Requires substa ntial trade financing this was highly adver! sely 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 peachy recession? Unclear. Shipping Techniques What are the two dominant forms of transport for exporting? 1.Air 2. naval Freight These are the focus of the paper by Hummels. Why might a firm conduct 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: BestEssayCheap.com

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