Daily News Article - March 18, 2013
1. a) What percent of New Balance sneakers sold in the U.S. are made here?
b) What percent of all shoes sold in the U.S. are imported?
2. a) What is a tariff?
b) When and why were shoe tariffs implemented by the federal government?
3. a) Why do U.S. companies support tariffs?
b) What is unusual about New Balance's support for shoe tariffs?
4. What two factors contribute to New Balance's ability to compete with Chinese made sneakers sold in the U.S.?
5. a) How many people does New Balance employ in the U.S.?
b) How much do New Balance's American-made shoes cost? (How much more are they than sneakers made in Asia?)
c) What is the reason for this cost discrepancy?
6. a) How will the elimination of tariffs help New Balance's competitors?
b) Why would China be opposed to the U.S.'s elimination of the tariff?
7. a) Do you think the government should impose tariffs on imported goods? Explain your answer.
b) Ask a parent the same question.