Question

In a world without trade, what would american consumers have to pay for logitechs products?

Answer 1

Answer:

Logitech1. In a world without trade, what would happen to the costs that American consumers wouldhave to pay for Logitech’s products? Without trade, Americans should pay a lot more expensive for Logitech products. Indeed, without commerce, Logitech could not make some lowering costs through its supply chain. Relocation would not have been possible and therefore savings either.2. Explain how trade lowers the costs of making computer peripherals such as mice andkeyboards.Through trade, Logitech has been able to decentralize some phases of its production chain and thus to reduce some costs. Thus that reduction permits also a decrease in Logitech products which are in sale in many stores.The ability to produce certain components in Asia led to this price drop. Without trade, it would not have been possible3.Use the theory of comparative advantage to explain the way in wich Logitech hasconfigured its global operations. Why does the company manufacture in China and Taiwan,undertake basic R&D in California and Switzerland, design products in Ireland, andcoordinate marketing and operations from California.