Banking on Solar Energy
The first step I would take as the president of Sunlight would be to try and re-consider the idea of doing business in Malaysia or Hong Kong. I would research the laws of trade between these other two countries and see if we would encounter the same issues as we are with doing business in Thailand. This information might not be of any use for the time being, but perhaps it’s something that can be of use in the future. Considering the decision of doing business in Thailand has already been made, I would start with lobbying both the Thailand and United States …show more content…
It could be produced abroad at some low-cost location and then exported back into the United States. Vernon went on to argue that early in the life cycle of a typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countries is limited to high-income groups. The limited initial demand in other advanced countries does not make it worthwhile for firms in those countries to start producing the new product, but it does necessitate some exports from the United States to those countries. Over time, demand for the new product grows in other advanced countries (e.g., Great Britain, France, Germany, and Japan). As it does, it becomes worthwhile for foreign producers to begin producing for their home markets
Strategic Trade Policies
Most developed countries use two types of strategic trade policies: subsidies or taxes on imports or exports and investment or adjustment assistance subsidies. Export subsidies, with few exceptions, such as agricultural products, violate the General Agreement on Tariffs and Trade (GATT). The United States originally insisted on the agricultural exemption, but is now fighting the European Community to remove it.
Usually adjustment assistance and investment policies are targeted to help declining or rapidly growing (infant) firms or industries. Most OECD countries provide trade adjustment assistance and other aid to workers and firms in its declining industries, such as textiles and