Automobile Trade Restrictions Economics Essay

Automobile Trade Restrictions Economics Essay The automobile industry is considered a very complex and vital industry compared to others, this is because of the development process with each project. The U.S. has said to have the most open automotive market in the world. The automotive industry has been a part of every major U.S. trade development dating back since World War One and is composed of three broad industries. These three industries consist of high-volume, full-ranged producers, which offer higher volumes and lower prices; while appealing to a mass amount of consumers. GM, Nissan, and Fiat are the main companies in this full-range producer and compete on a cost reduction basis. The second industry is the specialist producers, (BMW, Volvo, and Mercedes) these producers supply higher performance cars at higher prices and compete on the basis of differentiation and cost recovery. Lastly, there are niche producers, (alpine, TRV, and Ferrari), who offer on exclusivity and extreme performance. In addition to these producers, some trends can be identified when examining the global automotive market. These trends consist of the global Market, Establishment of Global Alliances, and Industry Consolidation. First, the global market is considered to be the worlds largest automobile manufacturer. The global market invests in production facilities that reduce production costs and are located in places such as Latin America, China, Malaysia and markets in Southeast Asia. Secondly, Establishment of Global Alliances are referred to as the, The Big Three (GM, Ford and Chrysler) who have merged in partnerships with other European and Japanese automobile manufacturers. Finally, Industry Consolidation involves increasing global competition among manufacturers and positioning within foreign markets. The U.S. is in the worlds top three automobile industries along with Japan and Germany. These automobile industries are major wealth generators for Europe and the U.S. recently providing over 17 million foreign and domestic cars and trucks in the U.S., which in turn accounted for more than 400 billion in sales. In addition to these producers and trends, there are six leading automobile manufactures, which are located in the U.S. and Japan. The U.S. consists of Daimler-Chrysler which is regulated by the United Nations, while General motors, and Ford are the other two in the U.S. The other three are produced by Japan and consist of Toyota, Nissan, and Honda. Between these six companies, they control over 87% of the market. The automotive industry has been a crucial part of the global market with automotive products accounting for ten percent of global merchandise trade. Fortunately and unfortunately with trade also comes trade restrictions. So what is a trade restriction? A trade restriction is defined as an artificial restriction on the trade of goods between two countries. The most known and important form of trade restriction is a tariff, import quotas, voluntary export restraints, and antidumping actions are also restrictions which will be explained in more detail later. In this paper I will explain trade restrictions/barriers that the U.S. imposes on the automobile industry, what programs are available to help make automobile trading more efficient and attractive for everyone, and also mention the various tariffs and trade barriers. In addition, I will talk about the current global automotive market , new foreign policy introduced in the U.S. and other nations, and finally explain the ramifications of certain restrictions and there effects on different people groups within the nation. First, there are many programs whose intentions are to help the automotive industry in trading. First are (APEC), Asia Pacific Economic Cooperation and Automotive Dialogue (AD) which serve as a forum for APEC. (APEC) attempts to find strategies to increase the integration and development of the automotive industry in a region. AD try to promote growth and development of the regional auto industry while also attempting to offer certain recommendations. Some of the economies that have participated in APEC and the AD include Australia, Canada, China, Indonesia, Japan, Korea, Malaysia, Mexico, the Philippines, Chinese Taipei, Thailand, Viet Nam and the United States. Many of these same countries have also tried and introduce new policies to make their country better off. For example, in 2004 China issued a new automobile industrial policy which discouraged the importation of automotive parts but encouraged the use of domestic technology in new vehicles assembled in China. In 2005, China issued regulations implementing the new automobile industrial policy.   The policy was said to unfairly discriminate against imported automotive parts and discourage automobile manufacturers in China from using imported automotive parts in the assembly of vehicles. In March 2008, Chinas policy was ruled inconsistent with several WTO provisions then in January of 2009, China complied with the recommendations and set rulings. Along with China, Korea also has attempted to bring out barriers that restrict importation and sale which include anti-import basis, standards and certification process and procedures, tariff and tax structure, and currency manipulation. So what are barriers/ restriction design to do? Barriers to entry are designed to keep out potential entrants from entering a profitable market. The barriers to enter the automotive industry are considered substantial, a new company must have the startup capital required to establish manufacturing capacity to achieve minimum efficient scale which is prohibitive. Many automotive established companies are entering new markets through strategic partnerships or through buying out or merging with other companies. Previously , the barriers to entry for new markets were low; However once the U.S. invited Japanese makers who began to offer quality vehicles in lower price markets compared to the U.S. changed this. Not only has Japan had success, many large automotive companies have globalized and entered foreign markets with varying degrees of success including, Asia, Africa, and South America whose barriers to entry are similar. As mentioned briefly before, there are a number of types of tariffs and trade Barriers that the government can employ and they include Specific tariffs, Ad valorem tariffs, Licenses, Import quotas, Voluntary export restraints, and Local content requirements. Specific Tariffs are considered a fixed fee levied on one unit of an imported good. Ad Valorem Tariff is based on a percentage of that goods value. Non-tariff barriers to trade include Embargoes, Subsidies, standards, and licenses which are granted to a business by the government which then allows the business to import a certain type of good into the country. So what effects can these barriers cause? Barriers can cause restriction in competition or increase prices on consumers. An import quota is a restriction placed on the amount of a particular good that can be imported. Voluntary Export Restraints (VER) is a type of trade barrier that is voluntary and is created by the exporting country rather than the importing one. Also, instead of placing a quota on a number of goods that can be imported, the government can require a percentage of a good be made domestically. The restriction can be a percentage of the good itself, or a percentage of the value of the good. Now that you know a little about tariffs and certain barriers, lets examine further the effect of tariffs and trade barriers on businesses and consumers. Patents, limit pricing, and cost advantages are all considered barriers to entry. In the short run, effects such as higher prices for goods can decrease consumption by individual consumers and by businesses, causing business profit and the government to see an increase in revenue from things like duties. However, in the long term, businesses can see decline in profits and efficiency due to lack of competition and future substitutes to their products. When speaking about the government, the long-term effect of subsidies is an increase in the demand for public services, overall resulting in less disposable income. When looking into the future, Japan continues its economic expansion which has allowed them to see continued success in exports. With the automobile industry being extremely competitive, the U.S. has worked with the, Big Three to introduce a program called the, PNGV which is a partnership for new generation vehicles. They aim to strengthen the U.S. global competiveness, keep jobs, while also trying to reduce the dependence of foreign oil, and improve the environment. The U.S. and Europe had increased concern regarding mobility, economic development, safety and environmental concerns when putting out new automobiles. As the government continues to try and provide incentives to reduce tax increases and fuel price increase they are also intending to find cars that reduce air pollution. Older models make automobile traded restrictions more difficult because of controversies over car prices and consumer preferences. Many consumers are now looking for vehicles that are equipped with, air-bags, power steering, antilock brakes, comfort, technology, and automobiles that reduce carbon going into the atmosphere. Car manufacturing must met safety, environmental, and business standard demand for international and domestic regulations. According to the future growth in the automotive industry over the next decade is expected to come from places like India, China, and Eastern Europe. Major companies are beginning to develop low cost cars, which include, Hyundai, Toyota, Fiat and others. With the increase worries about environmental issues, Hybrid sales have increased drastically. The U.S. and Europe are the main introducers of less pollutant and fuel efficiency standards in vehicles. So what are the ramifications of these barriers? Restrictions or trade barriers seem only to limit world trade, while also decreasing economic efficiency, reducing total production and employment, raise prices, and even cause retaliation. Some domestic companies benefit at the expense of foreign companies and workers, and domestic consumers. While subsidies do benefit domestic companies and workers in exporting industries, tariffs decrease exports and shift resources and production from more effective to less effective producers. In conclusion, while Japan continues to force competition on the U.S. It causes damage to the U.S car industry because of priced car exports. Causing the U.S. to now only represent s less than  ¼ of the world Industry and its market share continues to decline. Since 2007 the big three has been falling drastically. Chrysler is now selling 53 percent fewer vehicles since 2007, while GM is down 23% from 2007 and Ford 32%. Honda also saw declines along with Toyota who was down 37 percent, Nissan 31% and Honda 35 percent. All of these drops have caused oversupply in car lots, motivated dealers, easier financing terms, and long-term industry presence driving down the price of gas, making now the perfect time to purchase automobiles.

Boston Beer Company Case Essay

_Background Information_: The Boston Beer Company, which was founded in 1984, had a very diversified thriving product line which entailed about twenty different kinds of beers. Their product was available in over nineteen various countries and used a network of around four hundred distributors. Revenues grew from 21 million dollars to 210 million dollars from inception to 1997. _Problem and Opportunity Identification_: As a result of the company’s product line and its variety, the company encountered issues sustaining and upholding of their products such as Lightship – which has been withering in recent years and which doesn’t have the volume like other products to sustain distribution. Since the light beer business that Lightship belonged to was one that was rapidly growing, the Boston Beer Company felt the need to investigate its products disappointment. The research to do so took place in different forms such as competition, market, and financial analyses, customer surveys, and finally deep emotional analysis using the ZMET technique. _Alternatives_: One option the research team is considering is introducing a new light beer into their product line. It is understandable that since the high-priced light beer industry is one of the biggest and rapidly growing field in the beer industry, the Boston Beer Company wants to occupy and take advantage of this field to further enhance its name and maintain its market share and its standing. However, there are issues in terms of positioning and marketing of this product. The product needs to be communicated as a light, rich, fun beer and targeted at a different audience that entails women. In addition to the fact that this option might cause conflict in terms of the brand image being a macho rough beer brewer, using it doesn’t solve the problem for Lightship if Lightship is going to be kept in the market offerings. Another option the research team considered was repositioning Lightship and throwing in more effort and investment into the marketing of the product. It  was obvious that, compared to one of their biggest competitors Heineken, the Boston Beer Company has had trouble and sort-of failed to build a unique brand identity for this product. The product was not successfully differentiated and positioned in the market in order for it to build market share and improve standings. This failure could make it difficult for the company to reposition itself and change consumer perceptions to gain their interests and so it might be a waste of time and efforts. Finally, the last option is the dreaded one of not competing in this realm of the industry. This is a very extreme option since this realm is a huge and growing segment of the market and they would be missing out on a lot if they decide to pull out it. The failure to fit into this field, however, might have proved that the Boston Beer Company is not competent enough and ready to compete in this segment. _Critical Issues_: There are two main critical issues that the company should consider when making the decision about their situation in the light beer industry. One critical issue concerns the brand image – the company has an umbrella brand image of being a premium masculine macho craft beer brewer and shaking that could be seen to influence consumer perceptions. The second critical issue relates to the field study and the results it yielded – do they answer our questions about how to position the light beer product or on whether we should even introduce/keep products in this segment of the market. _Conclusion and Recommendation_: After reviewing the results of the various research techniques, the recommended option would be to introduce a new high-end light beer into the market (while probably retiring Lightship). Making use of the ZMET research results, this new product should be positioned in a manner that represents an active, refreshing, and healthy lifestyle. Having a new product instead of improving Lightship is best in order to avoid the difficult efforts of having to change stubborn consumer perceptions. Also, in terms of the umbrella brand image of BBC being a macho tough image, having a separate offering targeted at other audiences will probably add to the image of having two instead of eroding the existing image.

Essay Introduction Outline Secrets That No One Else Knows About

Essay Introduction Outline Secrets That No One Else Knows About What Is So Fascinating About Essay Introduction Outline? An outline will allow you to organize your primary thoughts and determine the order in which you're likely to write about them. It does not have to be extensive, but rather very comprehensive. Overall, it will help you communicate your point in a clear and organized format. Essay outline is a skeletal outline that supplies a platform on which you are able to construct your own writing and produce your own thoughts. The writer's body paragraphs ought to be the very same as their introduction, except much more in-depth. Let's construct the most fundamental essay outline template for a topic of the way to promote an item. The Unusual Secret of Essay Introduction Outline When you come up with the principal arguments, it is not going to be hard to put in a couple of sub-points to every one of them. In case you haven't introduced any kind of solution in your essay, perhaps encourage other people to become more conscious of your topic. Then ask yourself whether you want to compose a conclusion tying everything together. When you've written your supporting suggestions and facts, return and ask yourself whether you would love to compose a brief introductory paragraph. Who Else Wants to Learn About Essay Introduction Outline? The increasing number of essay writing services is wholly overwhelming. Our essay writing service offers proofreading services if you happen to get stuck on a specific phase of writing, or you might purchase an essay and using it as a template to make your masterpiece. If you are searching for top essay writing companies, try out the mentioned above. There are a number of essay writing services that think they're the very best, and therefore don't be cheated and check the real collection of the very best. It is preferable to compose an introduction that gives the significance of the topic in order to grab the interest of the readers. The next portion of your intro is devoted to offering some in depth background information on your topic. Just in the last 30 seconds do graders evaluate the caliber of your statements. The topic of a guide determines the points that are used. Basically, the sections of an essay proved just 3 divisions. The forms of the essays rely on the purpose they are being written for. There are several kinds of essays, it is not difficult to drop an eye on all your writing assignments. Keep in mind the voice you ought to use in such formal essays, it has to be second or third individual. Insufficient understanding of a certain topic can permit you to acquire low scores. Gauging your progress is vital because it accords you the chance to correct your essay model accordingly. Bear in mind that the best argumentative essay is something that has taken several nights to write. Essay outline acts as a spine for writing essays. If your essay should have the ideal story, which means that your layout should target only that. An essay template can help you define the target of your essay and stick with it. By now you're probably inclined to find an exemplary argumentative essay outline template. Introduction paragraphs are a couple of suggestions to make. Instance of an essay outline consists of several important parts. It is possible to also Speech Outline Template. If not certain, ask an instructor whether you've got to supply a formal essay outline with an assignment. You learn to compose papers. Every student need to know how to make an essay summary.

The Patient Protection Affordable Care Act is Good for...

Like Benjamin Franklin once said, â€Å"Words may show a man’s wit, but actions his meaning†, this is what America is expecting from president Obama. Most people believe that the Patient Protection Affordable Care Act (PPACA) violates the United States Constitution, and it should be eradicated. This law was implemented to help people acquire affordable health insurance; therefore, it is important to the people whom have preexisting conditions, and the American government is confronting medical legal and ethical issues like elective abortion. President Obama’s intention to provide affordable health insurance for all U.S. citizens is a noble act. However, there are mixed reactions in reference to this law in part of the citizens provided that†¦show more content†¦This act gives the American people rights and benefits. For example: it will provide health coverage to adults and children with preexisting conditions, it will end lifetime and annual limits on health care policies, it will allow adults under the age of twenty-six to be carried by their parent’s health insurance, and it will provide preventive service access without cost. The intentions of the PPACA are to provide coverage to uninsured people, to lower health care cost, to have a better system in order to stop fraud, and to stop health insurance companies to deny coverage due to pre-existing medical conditions. Richard Sorian, Assistant Secretary for Public Affairs says, â€Å"Since of the launch of the Health Care Fraud Prevention and Enforcement Action Team (HEAT) task force in 2009, over 670 defendants have been charged for attempting to defraud Medicare of more than $1.3 billion taxpayer dollars. 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