Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: shift be -Firms buttock a choice of how to ship goods crosswise 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 be changed over cartridge holder? Lowering shipping cost over time has created immense gains from clientele. We c be, because mountain cost are arguably larger than tariffs. Hummels penning finds that for every $1 paying in tariffs, we break $9 in passage costs. Includes red-tape through customs, distribution, etc. Also, foxiness costs may be related to cultural ties and historic networks of colonization. The most(prenominal) obvious employment English colonies like Canada trade oftentimes easier with Eng demesne because of coarse legal systems, cultural ties, etc. GATT: England wanted to animation these diachronic ties/ preferential relationships with it s colonies. Even though GATT didnt acknowledge much for this, trade still is juicyer between colonies. What makes up trade costs? 1.Travel a.Direct moveation costs distance b.25% of world trade occurs within those that share a land border 2.Insurance a.Can be curiously large if goods are high value 3. dissemination Costs a.

Distribution is getting the car from plant to destination. acquiring it through solely of the customs, to seller, etc. b.Some estimate that this is the superior component costs. 4.Most of these costs mustiness be paid up front a.Requires substantial trade financing this was highly adversely affe cted in the most recent credit crunch. b.W! as it the expectant recession that caused the collapse in trade, or did the collapse in trade create the commodious 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 pack 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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