Scenario 1International Trade

The Director of Purchasing for parts distribution company wants to purchase steel coach screws from Germany; however, he is not sure what the best option is. The director comes to you and asks your opinion. You know that Germany, Canada, and Korea are the best sources for obtaining this product. While your research shows coach screws from Germany are of the highest quality, the United States imposes a tariff of 12.5%, which makes this option noncompetitive.

• Which US trade laws should you consider when selecting a country?
• Is there any way by which you can seek a reduction on the tariff? If so, how? If not, why?
• Select an alternative country (Canada or Korea) for purchasing thecoach screws and explain your reasons for selecting the country.