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Bait and switch and rules of origin |
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Written by Stumo
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Friday, 23 November 2007 |
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Rules of origin. They are found in trade agreements.
These rules determine when we say a product is made in this or that
country.
A 100% Mexican product is easy to label as a product of
Mexico. But if most of a shirt is made in China, and assembled in
the U.S. with a couple of buttons, is it made in the U.S.A.? Of
if the shirt is primarily made in Argentina, but finally assembled in
Mexico, is it entitled to NAFTA duty free status?
Ths U.S. has
tariffs on imported ethanol due to a policy decision to grow our ethano
industry for energy security purposes. Cargill and ADM make
ethanol in Brazil. Under the Caribbean Basin Initiative, they
could rehydrate their Brazilian ethanol and take advantage of the low
CBI tariffs.
A NY Times op-ed today
shows how luxury good makers are hiding the origin of their products,
or misleading the public. These rules make or break some
industries.
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In the news
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The following, written by Professor Ralph Gomory of New York University's Stern School of Business and former President of the Alfred P. Sloan Foundation, appeared in the Huffington Post on December 16, 2008 and can be accessed here.
Autopia: A Tale of Two Bailouts
Many Americans are struggling to understand how our government makes decisions on corporate bailouts. When Wall Street companies spent years investing in mortgages that turned out, essentially, to be garbage, the government rushed to bail them out. But when the auto companies neared a similar fate, the government was prepared to stand by and let them perish.
To aid in understanding this situation, it is helpful to look at an example from a galaxy far, far away.
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