Question

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Here's the context in which you should write your final exam. Bronner's Christmas store is one of the largest in America. Bronners currently has one store located in Frankenmuth, Michigan. Bronner's has decided to open up a second store in Heidelberg Germany. Reflecting on each chapter in our textbook, respond to each of the following questions as though you were hired to be a consultant to Bronner's.

6. identify the benefits of trade between the US and Germany.

7. should Bronner's be concerned about government policy? Explain

Answer 1

• Trade relation with Germany and US lears to higher trade surpluses, better forex reserves, better political relations and higher availability of goods for both due to comparative advantage.
• Government policies are most impressive anf important asset as changing regulations and higher compliance adds to cumbersomeness and creates havoc in compliance and administration costs, legal and setup costs and thus jeopardise the enture expansion as it can become unviable and unsustainable if rules are too stringent.

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