Excess in Global Steel Industry
TABLE OF CONTENTS Page
1. Table 3.1. 3
2. Figure 3.2 6
3. Question 2 What are the reasons for persistent excess capacity in the global steel industry? What would it take for this capacity to be eradicated?
4. Question 2 6 Do you think that the steel industry is vital to the national security Interest of the United State? If so, is it important to protect this industry from low cost foreign producers?
5. Question 3 9 Do you think it is correct to assert, as advocates of free trade do, that Protectionism is self-defeating and harms consumers?
6. Question 4 12 What do you think would happen to American steel makers if the U.S Government were to unilaterally remove all barriers to foreign steel imports? Would the steel industry in the United States become extinct?
7. Question 5 14 What do you think President Bush should do in this case? Why?
8. Reference 17
Question 1
What are the reasons for persistent excess capacity in the global steel industry? What would it take for this capacity to be eradicated?
The basic reason for global steel industry has been persistent with excess capacity is because of supply has exceeded demand. There are many reasons contributing towards the excess in supply. The extensive use of metal in industry started during the early 20th centuries when the world is going through the industrial revolution. The introduction of machinery in almost all the industries promotes the use of steel. Then come the World War where the used of steel is at its maximum when almost all the machines and weapons used in the war are made with one or more combination of steel. In view of the high use of steel, the demand of steel worldwide is increased and many new companies emerge to capitalized with the high demand.
Until after the Second World War, the major world producers of steel
1. Table 3.1. 3
2. Figure 3.2 6
3. Question 2 What are the reasons for persistent excess capacity in the global steel industry? What would it take for this capacity to be eradicated?
4. Question 2 6 Do you think that the steel industry is vital to the national security Interest of the United State? If so, is it important to protect this industry from low cost foreign producers?
5. Question 3 9 Do you think it is correct to assert, as advocates of free trade do, that Protectionism is self-defeating and harms consumers?
6. Question 4 12 What do you think would happen to American steel makers if the U.S Government were to unilaterally remove all barriers to foreign steel imports? Would the steel industry in the United States become extinct?
7. Question 5 14 What do you think President Bush should do in this case? Why?
8. Reference 17
Question 1
What are the reasons for persistent excess capacity in the global steel industry? What would it take for this capacity to be eradicated?
The basic reason for global steel industry has been persistent with excess capacity is because of supply has exceeded demand. There are many reasons contributing towards the excess in supply. The extensive use of metal in industry started during the early 20th centuries when the world is going through the industrial revolution. The introduction of machinery in almost all the industries promotes the use of steel. Then come the World War where the used of steel is at its maximum when almost all the machines and weapons used in the war are made with one or more combination of steel. In view of the high use of steel, the demand of steel worldwide is increased and many new companies emerge to capitalized with the high demand.
Until after the Second World War, the major world producers of steel
References: | 1. Charles W.L. Hill (2003), International Business, Competing in the Global Marketplace, International Edition, Fourth Edition, Mc Graw-Hill Irwin, USA. 2. John D. Daniels and Lee H. Radebaugh, (1992), International Business, Environments and Operations, Sixth Edition, Addison-Wesley Publishing Company, New York. 3. Anita Gallagher (2001), Bush’s Action on Steel Tariffs Means The Real Economy is Back on the Agenda, Executive Intelligence Review, March 15, 2001 issue, USA. 4. R.M. Cyert and R.J. Fruehan, (1996), The Basic Steel Industry, Sloan Steel Industry Competitiveness Study, Carnegie Mellon University, Pittsburgh, PA. 5. The American Steel Industry Current Trade Issues, (2003), The President Steel Program, Stand Up for Steel, a coalition of the hardworking men and women of the United Steelworkers of America AFL-CIO/CLC and leading American Steel companies, USA.