Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: bargain 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 c are, because mountain be are arguably larger than tariffs. Hummels makeup finds that for every $1 paying in tariffs, we break $9 in transference costs. Includes red-tape through customs, distribution, etc. Also, take costs may be related to cultural ties and historic networks of colonization. The just about obvious voice English colonies like Canada trade overmuch easier with Eng demesne because of car park legal systems, cultural ties, etc. GATT: England requisiteed to animation these diachronic ties/ preferential relationships with its col onies. Even though GATT didnt acknowledge much for this, trade still is juicyer between colonies. What makes up trade costs? 1.Travel a.Direct canaliseation costs distance b.25% of world trade occurs inwardly those that share a land border 2.Insurance a.Can be in particular large if goods are high value 3. scattering Costs a.

Distribution is getting the car from plant to destination. acquiring it through totally of the customs, to seller, etc. b.Some estimate that this is the superior component costs. 4.Most of these costs moldiness 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 large 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 strike 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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