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Explain the concept of the new trade theory

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    Assignment ID: FG133135336

    Mr. Williams is a newly appointed assistant manager for a Japanese-based company. The company is thinking of outsourcing its products to the United States market, but the general manager is uncertain about making that decision. A meeting was held and many issues were brought forward. The general manager shared his views on the many restrictions of trade and the possible pitfalls of the necessary transactions in foreign currency as required to conduct business. However, several line managers in the meeting shared different views and voice their perspectives to support that such trading barriers will not affect outsourcing. Due to the disagreements made in the meeting, the general manager has asked you to write a report to include the following:

    A. Explain how the concept of the New Trade theory can be applied by the company.

    B. Describe any FIVE (5) of the most common reasons for trade barriers.

    C. If the company decides to move forward in their decision, describe TWO (2) ways in which the Foreign exchange market can assist the company.

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