Michael Froman, in 2014 was newly appointed United States Trade Representative, was responsible for directing the U.S. negotiating team in the conceptualization of the terms of the Trans-Pacific Partnership (TPP). On the one hand, a TPP participant state, Vietnam, was the second biggest foreign footwear supplier in America and was pushing for the elimination of tariffs.
On the alternate side, U.S. labour unions argued that Vietnam's strength in the footwear sector was predicated on unjust subsidies and labour practices. Even among U.S. footwear companies, there was disagreement. Froman had to carefully consider the arguments of all the stakeholders to determine whether or not to impose conditions on Vietnam, whether or not to accept the lowering of tariffs on footwear imported from Vietnam and, if he accepted.
PUBLICATION DATE: September 19, 2014 PRODUCT #: HEC087-PDF-ENG
Nike versus New Balance Trade Policy in a World of Global Value Chains Case Study Solution
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