Will tire tariffs launch a trade dispute? Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Will tire tariffs launch a trade dispute? Case Study Solution

What are some alternative ways to offer relief to suffering local industries?

There are several ways through which the US government can relief to suffering local industries includes; to promote the research and development (R&D), improve the tax code of business, develop the favorable policies for trading and training the manufacturing workforce that would most likely open the global markets as well as cutting down the trade barriers. The government can facilitate local industries through research & development programs where government, industry and academia can collaborate to share rewards and risk of innovative technology research. It should create the network of manufacturing innovation institutes all around the country.

In addition to this, the government should support manufacturing infrastructure requirements i.e. enhancing and maintaining the infrastructure for transportation and utilities required by the manufacturing industry. The government should help in establishing the guidelines and rules for integrating the eco-system, the standards would permit the sharing of risk and investment related to the implementation of the standards all around the companies in an industry. Also, the standards would create the more competitive arena by allowing small companies and products to participate with less risk and cost in the more open multi-vendor manufacturing eco-system. The standards would allow innovation by combining techniques involves different standards in different domains.

Discuss the implications of an escalating trade war between the United States and China. Does one country stand to lose more than the other?

Between China and United States, the consequences of the escalating way is inevitable since US have imposed tariffs on several range of products imports from china. The subsequent stage might be for US for restricting the investment from china into country. Presumably, if this would happen, the china would most likely response in kind. Also the tensions between china and United States would go beyond the taxes as well as directly disrupt the supply chain globally as investment is targeted.

Any disruption to the distribution chains and supply chains which are the key component of the world trade would have a lasting and inevitable impact. In the worst case scenarios, there is a likelihood that the companies would have to relocate distribution centers and factories. The investment decision would affect the tax raised and employment, also the investment decision might be disruptive as compared to those tariffs which would be reveres easily.

Such escalation will be destructive for both economies of US and China as market leader such as Apple prefer to invest in both countries. Such in turn, might not only affect business in US but also America customers. The reputable retailer such as Wall-mart imports products from china, so living standards would be squeezed and prices would go up. Also, since the US products are exported all around the world, if the country is dependent Chinese made parts, the consumers in all around the world and in UK might be highly influenced. Similarly, it is applied to the Chinese producer and consumers, significantly as there are half of Chinese exports are made by enterprise with international investors. The trade war hugely damage the economies consequences and it would not result in better production of US technology or give American firm better accessing to the markets situated in china, not it would assist china in making investment in America. So, it is critically important that trade war between US and China is avoided at all costs (Yueh, 2015)........

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