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Problem:

Under the North American Free Trade Agreement (NAFTA), Mexican truckers were to have been allowed to drive their trucks directly into the United States and avoid the costly and time-consuming border unloading and loading that took place prior to the agreement. However, fearing job losses in the industry, the U.S. Teamsters Union rigorously opposed the legislation. Although the group ultimately lost its fight, the United States still did not give Mexican truckers freedom to deliver their goods, prompting Mexico to institute retaliatory measures affecting $2.4 billion of goods exported from the United States.

Required:

Question 1) Why did the United States respond to the concerns of the Teamsters?

Question 2) Why are those affected by Mexico's retaliatory tariffs not lobbying congress for relief?

Question 3) Should the United States protect the Teamsters at the expense of agricultural exporters in California and Washington?

Explain the solution in detail.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91149524

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