The Politics of Trade in Steel Case Study MGT448

As the world grows and advances, industrial globalisation occurs. Industrial globalization affects the economies of more(prenominal) nations throughout the world. One constancy whose globalization has affected the pecuniary value and supply of its product is the brand industry. In the put up a few(prenominal) years, the make industry has experienced an increased choose for firebrand, which in turn has caused the cost of marque to increase drastically. 1. Do you regard the scrub governing was correct in obligate tariffs in March2002 on a wide range of steel imports?I weigh that electric chair Bush needed to do something to comfort the US steel market. At the time that President Bush decided to impose temporary tariffs on steel imports, 16 steel manufacturers were already operating under bankruptcy protective cover (Hill, 2005). The whole idea of the tariffs as explained by Leo Gerard, the chairwoman of the United Steelworkers of America, was to protect American jobs by giving the industry a chance to rebound and to crumble the steel manufacturers a chance to upgrade their mills so that they could compete against the more efficient hostile producers (Hill, 2005). I believe the Bush administration tried, but in the end, the tariffs unless protected the lucre of steel employees. 2. Who are the main beneficiaries of protective tariffs such as those oblige on steelimports? Who are the losers?

The main beneficiaries are speculate to be the American economy, domestic producers and employees against foreign competition, and to raise monetary resource for the national govern ment (Hill, 2005). On the other side, the i! ncrease in tariffs only hurt the consumers and foreign businesses by increasing the prices of steel and well-nigh starting a trade war with foreign economies. Since the US had established tariffs on steel, other countries had begun counteracting by imposing their accept tariffs against US exports and began to seek... If you want to get a affluent essay, nightspot it on our website: OrderCustomPaper.com

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