published: 2006 | Case Study | Economics
Subject Area: International Business; Economics
Key Issues: Free trade vs. tariffs; Long-term business strategy
Case Description: SERVEX's president is noted as a "free trader". However, he is confronted by his plant managers when the fibreboard division loses a significant amount of business due to low cost imports. Although the company activates a cost-cutting program, they cannot become competitive. Should the company apply for tariff relief?
# Case Pages: 3
Case Number: 080005-G
Teaching Note: No
revised May 23/06