Global business owners and managers must plan for such unexpected events such as changes in trade rules. They must calculate how trade rules will affect markets and pricing. According to Farm Policy News, Soybeans are the United States' number one agricultural export. In 2020 the U.S. exported $25.7 billion of soybeans which accounted for almost 18 percent of total U.S. agricultural exports. (Farm Policy News, 2021)

In 2017, the Trump administration imposed tariffs on Chinese goods to force China to address trade imbalances. This created a trade war between the US and China which is impacted the soybean industry. China retaliated with tariffs on goods. The soybean market was particularly affected. China began importing more soybeans from Brazil where the cost was substantially cheaper. This, in turn, affected the US soybean industry. (Carpenter & Dunung, 2011)

Assignment Directions:

Please submit your answers to the following questions in essay format. Your answers to the questions below should be at least a paragraph in length. (A paragraph is a min. of three to four sentences).

Answers should be well thought out and have facts to support them. Facts should be cited using APA formatting. (APA video tutorial posted as an announcement)

1According to CNN, soybean sales to China have nearly rebounded to their pre-trade-war levels. However, if you worked for an agricultural company prior to 2022, how would you manage the soybean tariffs?

2How can business owners and managers plan for unexpected events as changes in trade rules, and how they will affect markets and pricing?

3Trade wars tend to be ineffective; how does the WTO offer a more structured approach?