Business Story Analyze

You have to pick an interesting story dealing with international business from the print/internet media. You can pick any story that interest business related story.

– However, you cannot use a story dealing with stock market. You will read this story and then conduct some independent research (at least two other sources) and write the following:

1. A summary in your own words.

2. Individual research on this issue using at least two other internet resources. Please include detailed citations. For example: (

http://www.InternationalBusiness.com/article.html

):
Make sure you post the FULL URL of the Web site being referenced.

3. Analysis and you own conclusion

4. Why did you choose this story?

5. What did you learn from it?

I HAVE ATTACHED A DOCUMENT.  Please use this as an example. That is how it should look like. Thank you..

“Trump’s 20% Mexico Import Tax Will Affect Your Dinner”

Title of the Article: “Trump’s 20% Mexico Import Tax Will Affect Your Dinner”

Source of the Article: Fortune

Author of the Article: Unknown

Date of the Article: January 27, 2017.

Address of the Article:

http://fortune.com/2017/01/27/donald-trump-20-percent-import-tax-mexico/

Summary of Article: 

After the presidential election, Donald Trump announced that he would impose a 20 percent tax on import tariffs for Mexico. This suggestion has been made to cover the fee of the boarding wall after President Henrique Pena Nieto has refused to pay for it. This announcement could not only affect Mexican’s exports, but also American people. According to the Department of Agriculture, the United States imported $ 21 billions of food and drink from Mexico in 2015. Consequently, the price of a dinner would be more expensive in the next few years.

Additional Research: 

1.
“To Understand a Tax on Mexican Imports, Consider the Avocado”

https://www.nytimes.com/2017/01/27/business/economy/importers-tax-mexico.html?src=busln&_r=2

According to the article “To Understand a Tax on Mexican Imports, Consider the Avocado” (Brasher, 2017), more than nine of every ten imported avocados come from Mexico. As mentioned above, the 20 percent tax could affect their price. However, it would not be more than 30 cents per avocados. A solution is to increase the production of avocados trees in the United States but it will take about 5 years to obtain fruits. Thus, American people would have to pay a little bit more if they still want to consume the famous guacamole. Nonetheless, the increase in taxes on imported good could be a benefit for American farmers. Indeed, a 20 percent tax would reduce the corporate profit tax and increase their revenue.

1. “Trump Mexico Wall: How Will He Pay For Border Wall? President Has A Tax Plan”

http://www.ibtimes.com/trump-mexico-wall-how-will-he-pay-border-wall-president-has-tax-plan-2481968

Mexico does not just provide avocados to the United States. Indeed, in this article, Marcy Kreiter states that Mexico exported $74 billion in vehicles, $112 billion in machinery (electrical and others), $12 billion in optical and medical instruments, as well as $14 billion in mineral fuels. In conclusion, a 20 percent tax boarder would not only raise the price of food, but every imported good from Mexico.

Analysis and Conclusion: 

In my view, closing the barriers between the U.S and Mexico is the beginning of the end for globalization. If the proposition of the 20 percent tax is accepted, it will certainly create a conflict between these two countries which can lead to a significant deficit for the United States since the country imports more than it exports.

Moreover, the tax boarder could also alter the free trade agreement (NAFTA) with the two major partners of the U.S: Mexico and Canada. One of the main objectives from NAFTA was to eliminate all trade barriers (quotas, tariffs etc.). Therefore, if the tax reform is applied, we could expect some severe changes in the economic, political, and legal environment soon.

In general, imported goods from Mexico will be more expensive for the American population. Even if we are not sure about the next guacamole price, the example of avocados gives us an overview of what the change of import tariffs would be in the next few years. Finally, it is important to keep in mind that not everything is black or white. Such a change in the business sector could create more jobs opportunities in the country.

Why did I choose this topic: 

I chose this topic because I am interested in how tariffs can play a role between different countries. In addition, I wanted to understand the effects of the new U.S government laws which might be applied to several countries such as Mexico.

What did I learn: 

Thanks to this article, I could learn more about the 20 percent tax on imported goods. Consequently, I learned that not only Mexico will suffer from this change, but also the American people will be affected by this scenario in the future. On the other hand, I learned that restraining the imports in the United States would also increase the amount of jobs within the country and so, maybe boost a little bit the economy. 

References
Trump’s 20% Import Tax Will Affect Your Dinner. (2017, January 27). Fortune. Retrieved from
http://fortune.com/2017/01/27/donald-trump-20-percent-import-tax-mexico/
K. B. (2017, January 27). To Understand a Tax on Mexican Imports, Consider the Avocado. The
New York Times. Retrieved from https://www.nytimes.com/2017/01/27/business/economy/importers-tax-mexico.html?src=busln&_r=2
Kreiter, M. (2017, January 26). Trump Mexico Wall: How Will He Pay For Border Wall?
President Has A Tax Plan. International Business Times. Retrieved from http://www.ibtimes.com/trump-mexico-wall-how-will-he-pay-border-wall-president-has-tax-plan-2481968