IB-Case 9

Answer the following questions:

1

Discuss the use of tariffs as part of a nation’s trade policy. What are the different types of tariffs? Which type of tariff is being imposed on California’s wine exports to China? What are the effects of the tariffs on California wine exports?

2

Consider the impact of globalization and why California’s winemakers are upset with how the ongoing trade war between the United States and China has impacted their business. In your opinion, is their concern warranted?

3

Reflect on the unique situation of California’s winegrowers in the trade war with China. How does their situation differ from that of other companies that produce their products in factories? How can the winemakers offset the impact of the retaliatory tariffs imposed by China?