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. You are an employee of a U.S. firm that produces personal computers in


Thailand and then exports them to the United States and other countries


for sale. The personal computers were originally produced in Thailand


to take advantage of relatively low labor costs and a skilled workforce.


Other possible locations considered at the time were Malaysia and Hong


Kong. The U.S. government decides to impose punitive 100 percent ad


valorem tariffs on imports of computers from Thailand to punish the


country for administrative trade barriers that restrict U.S. exports to


Thailand. How should your firm respond? What does this tell you about


the use of targeted trade barriers?