Reflective Post 7

For the simulation project, my team represented the Ford Motor Company. The consideration put forth before the President was if import tariffs and duties should be dropped. The position taken by Ford was obvious; these duties and tariffs on foreign automakers who import cars into the U.S. auto market were helping Ford and the Big-three by creating an artificial competitive advantage.

But is it really an advantage?

Honda, Toyota, and other Asian auto-makers are able to produce cars overseas, import them, and still sell them to U.S. consumers at the same or lower prices than the Big three. This is just one point that indicates the failure of protectionist policies.

This is a free-market dilemma, where a free-market does not exist. Ford and the others are adamant about protecting the U.S. auto-market for themselves, and they do this by supporting legislation that hurt foreign auto-makers.

The aggressive lobbying to protect U.S. auto companies is part of a larger narrative, in which foreign auto-makers have been chipping away the dominance of the Big three. Protectionist policies serve as sad reminders that down-trodden American companies try to gain an un-fair/free advantage in which the consumer looses.

The final decision made by the President came as no surprise. Detroit has been in decline for the past few decades. Is the government going to prop up these companies in the hope that they will survive and be competitive with Asian companies? Should it? The U.S. has to progress into more innovative and cutting-edge industries. The way forward is to invest in new industries that can create jobs and replace ailing industries such as the U.S. car manufacturing industry.