Abstract

Mexico's foreign trade is among the first worldwide. In 2013, it was the tenth exporter and ninth importer around the globe, and it took the first position in both categories among Latin American and Caribbean countries. Tariffs such as safeguards protect specific sectors and temporarily restrict imports of identical, similar or directly competitive to domestic goods to prevent or repair some damage and enable the adaptation of domestic manufacturers. The objective of this research is to establish the impact of the safeguards imposed by theEcuadorian government from the perspective of a Mexican export company and its positions in the market. Said surtax was applied to the importation of electrical appliances in March 2015. The results show the effects of this protectionist measure and the negative implications for Mexican exporters by analyzing the financial situation before and after its enforcement. Sales behavior, cost of tariffs and the relationship between them are described.

Authors and Affiliations