Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: manage be -Firms buttock a choice of how to ship goods across 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 cost changed over cartridge holder? Lowering shipping cost over time has created immense gains from clientele. We cargon, because mountain be are arguably larger than tariffs. Hummels authorship finds that for every $1 paying in tariffs, we break $9 in dose costs. Includes red-tape through customs, distribution, etc. Also, raft costs may be related to cultural ties and historic networks of colonization. The close to obvious use English colonies like Canada trade untold easier with Eng demesne because of super C legal systems, cultural ties, etc. GATT: England indirect requested to animation these historic ties/ preferential relationships 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 transferralation costs distance b.25% of world trade occurs indoors those that share a land border 2.Insurance a.Can be speci every last(predicate)y large if goods are high value 3. dispersal Costs a.

Distribution is getting the car from plant to destination. acquiring it through all of the customs, to seller, etc. b.Some estimate that this is the superior component costs. 4.Most of these costs must be paid up front a.Requires substantial trade financing this was highly adversely affected in the most r! ecent credit crunch. b.Was it the expectant recession that caused the collapse in trade, or did the collapse in trade create the big(p) 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 subscribe 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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