Business Finance Homework Help

OPENING CASE: American Steel Tariffs

QUESTION 1: Donald Trump claims the new tariffs imposed on imported steel are vital to the United States’ national security. Explain his argument. Do you agree?   

QUESTION 2: Who are the winners and who are the losers from the tariffs imposed in 2018 by Donald Trump on imported steel? 

QUESTION 3: Consider the long-term implications of policies like the one imposed by Donald Trump on imported steel. What does it mean for the future competitiveness of companies that rely on imported steel? What does it mean for employees in those companies and for consumers?

CLOSING CASE: The United States and South Korea Strike a Revised Trade Deal

QUESTION 1: Why do you think the Obama Administration pursued a trade deal with Korea in 2012? What were the potential economic and political benefits? What were the potential costs?

QUESTION 2: Is there any evidence that the 2012 free trade deal between the United States and South Korea was a “job killer” as claimed by President Trump?

QUESTION 3: What were the motivations of the Trump Administration in renegotiating the 2012 deal?

OPENING CASE: Starbucks’ Foreign Direct Investment

QUESTION 1: Why did Starbucks enter Japan and China via a joint venture rather than as wholly owned subsidiaries? What are the benefits of this approach? Do you see any drawbacks?

QUESTION 2: How did Starbucks ensure that its model was successfully transferred to Japan? Why was this important to the company? 

QUESTION 3: Why did Starbucks change its strategy in China and Japan from a joint venture format to a wholly owned subsidiary model? What is the company hoping to achieve with this change?

CLOSING CASE: Geely Goes Global

QUESTION 1: Why did Geely acquire Volvo? What are the benefits of acquisition? What are the potential costs and risks?  

QUESTION 2: The Volvo acquisition allowed Geely to grow its sales in China. Why might an acquisition have been preferred to simply licensing the brand and know-how from Volvo (assuming that was an option)?

QUESTION 4: What are the benefits of Geely’s investment in South Carolina to the U.S. economy? What are the potential costs? Do you think it was in the interests of the United States to let this investment proceed?