What kinds of problems can policies cause for companies


Discussion:

1) Governments often pursue policies that promote exports while limiting imports. What are some of those policies? Does this make sense? What kinds of problems can policies cause for companies in these countries?

2) The president of XYZ Manufacturing Company of Buffalo, New York, comes to you with a license offer from a company in Osaka. In return for sharing the company's patents and know-how, the Japanese company will pay a license fee of 5 percent of the ex-factory price of all products sold based on the U.S. company's license. The president wants your advice. What would you tell him?

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Microeconomics: What kinds of problems can policies cause for companies
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