Us Export Competiveness Case Study Essay
Marcus Pace
MGT 430
Professor Schaefer
Case Study #1
Why Are US Exports So Competitive?
1. ON ETHICS: Prior to taking this class and studying this case, have you often heard or read the decline of US export competiveness? What are the social and ethical implications of such excessive (one sided) negative reporting? Does this case change your mind? Why?
a. Prior to taking the class, I had not heard much about the decline in US export competiveness. In studying the case, I found that with negative reporting, other countries will try to obtain more technological goods than its competitors in order to be the best choice. Socially, higher demand would increase prices for US exports (Peng,2016) . Most of the countries would be more willing to pay higher prices for better goods. The rivals of the US will increase the production of their goods in anticipation of opportunity to increase their exports when the supply of that good in the US declines (Peng,2016). When the …show more content…
exports from the US do not decrease, it will mean the competitors will have to decrease their prices to sell their goods. In my opinion, negative reporting of the US export decline almost seems intentional when defining its implications.
b. The negative reporting is unethical because it can lead to poorer nations signing the free trade agreements with the US in order to gain access to superior technologies. The free trade gives right to access to the economy of the smaller nation (Peng,2016) . Negative reporting of decline in export by the US has an overall effect of the increase in export, increase in prices of the export, appreciation of the currency and the even exclusive access to the economies of the smaller countries (Peng,2016) .
c.
This information was all new knowledge for me as I had no cognizance if the issue before the study. It seems that it may be a tactic used to gain superiority in the market.
2. From a resource-based view, why are US exports so competitive?
a. The cost effectiveness of manufacturing is the primary benefit. Having treaties with other countries is extremely beneficial for the US and it makes its export more enticing than any of its competitors. Low costs for raw materials and finding cost effective ways to manage resources such as energy and power allow them to stand out among other countries.
3. From an institution-based view, why are US exports so competitive?
a. The US is the second top exporter to China. As an institution, the US has done an excellent job over the years in making their products stand alone amongst their competitors, which has in turn has allowed them to be more successful in the export market. As an institution they have a number of reasons why they are
competitive.
i. They make well made products. (Peng,2016) ii. US exports are rare and hard to replicate. (Peng,2016) iii. US exporters have to organize themselves in a more productive and efficient manner relative to their global rivals. (Peng,2016) iv. US offers exportation federal agencies like; Departments of Commerce, Trade State, Energy and the United States Trade Representative (USTR). (Peng,2016)
v. New programs focus on free trade agreements with trading partners. (Peng,2016)
References
Peng, Mike W. (2016). Global 3: Global Business (Student Ed.) Boston: Cenage Learning. ISBN 978-1-305-62721-5
MGT 430
Professor Schaefer
Case Study #1
Why Are US Exports So Competitive?
1. ON ETHICS: Prior to taking this class and studying this case, have you often heard or read the decline of US export competiveness? What are the social and ethical implications of such excessive (one sided) negative reporting? Does this case change your mind? Why?
a. Prior to taking the class, I had not heard much about the decline in US export competiveness. In studying the case, I found that with negative reporting, other countries will try to obtain more technological goods than its competitors in order to be the best choice. Socially, higher demand would increase prices for US exports (Peng,2016) . Most of the countries would be more willing to pay higher prices for better goods. The rivals of the US will increase the production of their goods in anticipation of opportunity to increase their exports when the supply of that good in the US declines (Peng,2016). When the …show more content…
exports from the US do not decrease, it will mean the competitors will have to decrease their prices to sell their goods. In my opinion, negative reporting of the US export decline almost seems intentional when defining its implications.
b. The negative reporting is unethical because it can lead to poorer nations signing the free trade agreements with the US in order to gain access to superior technologies. The free trade gives right to access to the economy of the smaller nation (Peng,2016) . Negative reporting of decline in export by the US has an overall effect of the increase in export, increase in prices of the export, appreciation of the currency and the even exclusive access to the economies of the smaller countries (Peng,2016) .
c.
This information was all new knowledge for me as I had no cognizance if the issue before the study. It seems that it may be a tactic used to gain superiority in the market.
2. From a resource-based view, why are US exports so competitive?
a. The cost effectiveness of manufacturing is the primary benefit. Having treaties with other countries is extremely beneficial for the US and it makes its export more enticing than any of its competitors. Low costs for raw materials and finding cost effective ways to manage resources such as energy and power allow them to stand out among other countries.
3. From an institution-based view, why are US exports so competitive?
a. The US is the second top exporter to China. As an institution, the US has done an excellent job over the years in making their products stand alone amongst their competitors, which has in turn has allowed them to be more successful in the export market. As an institution they have a number of reasons why they are
competitive.
i. They make well made products. (Peng,2016) ii. US exports are rare and hard to replicate. (Peng,2016) iii. US exporters have to organize themselves in a more productive and efficient manner relative to their global rivals. (Peng,2016) iv. US offers exportation federal agencies like; Departments of Commerce, Trade State, Energy and the United States Trade Representative (USTR). (Peng,2016)
v. New programs focus on free trade agreements with trading partners. (Peng,2016)
References
Peng, Mike W. (2016). Global 3: Global Business (Student Ed.) Boston: Cenage Learning. ISBN 978-1-305-62721-5