A U.S. manufacturer wants to sell polygraph (lie detector) equipment to companies in Honduras. Because the U.S. government limits trade with Honduras, the manufacturer is required to obtain an export license from the Department of Commerce before selling and shipping the equipment to the purchaser. The export license fee is $8,100, not including a nonrefundable application fee of $2,700. What are the possible effects of these fees?

Question

kewlgeek555 · Answer

@Xmoses1 MIGHT be able to help.  He is good with some finance. c;

kewlgeek555 · Answer

I wish I could help but I do not know ALL of these terms, and do not have time to research as well.  Good luck, I hope you get an A! ;D

kewlgeek555 · Answer

Also, welcome to OpenStudy. c;

You can also post this in the "Fincance" section which is slightly more popular. c;

anonymous · Answer

It says I cant message him unless he fans me :/ & it's alright! I hope I pass to! & aw thank you! & I will try that! Thank you for the advice!!

kewlgeek555 · Answer

I'll message him for you. ;D

anonymous · Answer

Thank you! There is more questions, but It only allows me to post one at a time :/

kewlgeek555 · Answer

Yeah, OS was built like that. cx

xmoses1 · Answer

Thanks @kewlgeek555 for the referral! Here is my best answer; I hope it is of some benefit to you :)

Well, having such a high export fee, for such a small export, will cause a lack of desire in trade with Honduras. Having such a high charge will cause the company interested in trade to reconsider following through with the barter. This will create a one sided deal, where only one side will benefit. Not every company can afford this type of transaction. Also, this goes for the having to purchase a separate export license, making the work not worth the effort.In my opinion this is a poor decision, as allowing this trade to commence with the US would greatly boost the economy of Honduras. However, that is just my opinion ;)