Ben En Jerry

Lecture 4: Ben & Jerrys Lecture Agenda: craftiness be -Firms buttock a choice of how to ship goods crosswise 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 be, because mountain be are arguably larger than tariffs. Hummels report finds that for every $1 paying in tariffs, we break $9 in dose costs. Includes red-tape through customs, distribution, etc. Also, change costs may be related to cultural ties and historic networks of colonization. The some obvious exercise English colonies like Canada trade lots easier with Eng demesne because of reciprocal legal systems, cultural ties, etc. GATT: England deprivationed to animation these historic ties/ preferential relationships with its colonies. Even though GATT didnt acknowledge much for this, trade still is juicyer between colonies. What makes up trade costs? 1.Travel a.Direct captivateation costs distance b.25% of world trade occurs deep down those that share a land border 2.Insurance a.Can be particularly large if goods are high value 3. dispersion Costs a.Distribution is getting the car from plant to destination. acquiring it through wholly of the customs, to seller, etc. b.Some estimate that this is the superior component costs. 4.Most of these costs mustiness be paid up front a.Requires substantial trade financing this was highly adversely affected in the most recent credit crunch. b.Was it the expectant recession that caused the collapse in trade, or did the collapse in trade create the spacious 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 get hold of one over the other? -Ocean Frei! ght: This is cheap and efficient. o...If you want to get a wide essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay