Please assist with answers to both scenarios: Scenario 1—International Trade The
ID: 380600 • Letter: P
Question
Please assist with answers to both scenarios:
Scenario 1—International Trade The Director of Purchasing for parts distribution company wants to purchase steel coach screws from Germany; however, he is not sure what the best option is. The director comes to you and asks your opinion. You know that Germany, Canada, and Korea are the best sources for obtaining this product. While your research shows coach screws from Germany are of the highest quality, the United States imposes a tariff of 12.5%, which makes this option noncompetitive. Which US trade laws should you consider when selecting a country? Is there any way by which you can seek a reduction on the tariff? If so, how? If not, why? Select an alternative country (Canada or Korea) for purchasing the chocolate milk and explain your reasons for selecting the country.
2 – Bribery Slyce Pizza Company purchased four commercial refrigerators for the restaurants and eight pizza ovens from a supplier in Italy. Between the shipping costs, delays, and unanticipated duties, the purchasing manager was worried that his boss would be upset about the total costs. In an effort to reduce costs, the manager offered a US Customs officer $500 in cash to re-classify the imported goods to reduce the amount of duties owed. Analyze the legal and ethical ramifications of the purchasing manager's offer to the customs official? Would it make a difference if the purchasing manager offered to donate $500 to St. Jude Children's Research Hospital if the officer expedited the paperwork necessary to release the goods from custom's custody?
Explanation / Answer
International Trade is the process of Importing/Exporting goods across borders.
1. "Investigation of Foreign Trade condition by FTC" should be considered when selecting a country. This law governs the Tariffs and regulations for trade with other countries.
There is no way to seek redemption on the Tariff and the reasons are as follows,
Here the best option is to go with Canada as it borders USA and the shipping cost of items can be very less.
Purchasing Chocolate Milk :
Chocolate Milk can be purchased from Canada rather than Korea for the following reasons -
2. Manager's offer to US Customs Officer of $500 will be considered a act of bribe. By US Law, any attempt to bribe the Customs Officers is condemned and the faulty will be sentenced for punishment. So, manager's offer will further complicate the issues.
Yes, definitely it'll make a difference if the manager offered for donation of $500 to "St. Jude Children's Research Hospital". This can be considered an act of social activity with a personal gain. The receipt of donation can be provided to customs authority to seek a reduction in duties implied on the import.
This is possible because it is considered a direct act of social service. All the duties and tariff's collected by customs are finally used by the government for improving the society so this offer can be accepted by Customs Official. But it is always under the sole discretion of US Customs Officer to decide the reduction of Tariffs.
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