Question:

Help pls!!!!?

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A U.S. manufacturer wants to sell polygraph (lie detector) equipment to companies in Honduras. Because the U.S. government limits trade with Honduras, the manufacturer is required to obtain an export license from the Department of Commerce before selling and shipping the equipment to the purchaser. The export license fee is $8,100, not including a nonrefundable application fee of $2,700. What are the possible effects of these fees?

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  1. looks like i'll be always there to help u.................

    first look at company risk increases(non diversifiable)(expexted loss if not accepted by consignee)  mc also increses 8100$ outright, P bar,fixed,internationally, so what? profitability decreases i(80% answered)f no of international suppliers rise domestic suppliers withdraw and face temp losses..................

    but honduras is a small nation naa:?


  2. Honduras will turn to other countries not requiring this kind of control.

    China is able to supply the world without these barriers. You and I will in our life time see immigration waves to China not the US.

  3. Supply will fall due to such trade barriers. This will lead to increase in price of lie detectors and consequently will reduce quantity sold.
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