cba hw 5 ch6 Essay

Submitted By evormr9
Words: 506
Pages: 3

Tony Huynh
Steve Damaso
James Antony

Chapter 6 HW

1. The government might want to get the most money out of the firms as possible. The government also might want to save jobs in dying industries. Since money controls things the government might have gave the firm money, thus now it is in control. They have an unfair advantage by cutting the price of products because they do not make a profit. They also get government contracts and export assistance.
2. Having insurance just in case they need money for ransom and hire a company to deal with the terrorist for them. They can get a CRA to see the evaluation of the country they may be dealing with.
3. The government my raise regulations which may be costly. All businesses must comply with the government or they may have to deal with repercussions.
4. When an international company brings their technology and their markets to a host government they can have an advantage. The IC can threaten to leave the host country to make the government give favorable regulations.
5. No. The CRA assess a countries risk to some degree but can never be complete.
6. Usually trade restrictions are made by special interest groups like labor unions. They make these restrictions to prevent their jobs to be loss.
7. Placing restrictions on competitive imports is not the way to protect our defense industries. By placing restrictions on the free market, we create imbalances that result in lower quality, higher prices, and less innovation. The way to protect our defense industries is to provide incentives for them to develop innovative, high quality, lower price defense systems
8. International trade professional would argue against governmental efforts to protect a new or recently established industry because of the free trade, they would make it unfair for other industries to enter because they would compete with this new industry. Instead of letting the industry see if they are the better company than the others.
9. Selling a