February 20, 2017

Homework Help: Business, help asap!

Posted by Victoria on Wednesday, January 7, 2009 at 5:00pm.

here is the case.

While in Australia, you discover a raspberry jam with incredible flavour. You know Canadians would enjoy this product, so you import it. The jam sells in stores for $5.00 a jar, a slightly higher price than standrad jam. The Canadian consumer is willing to pay $5, but when some retailers try to sell it for $6, the demand drops condsiderably. As an importer you have been trying to hold the cost price constant.

1) What are the potential benefits for you and the jam manufacturer of this trade arrangement?

2) Explain one possible social cost of this international transaction.

3) What if the ocean freight rates go up 4%

4) What if Canada signs a free trade agreement with Australia?

5) What if the value of the Canadian dollar goes down 5% compared to the Australian dollar?

6)What if Australia has a drought, and the raspberry crop is harmed?

I really need answeres asap..thank you

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