Subsidies to US Auto Industry

Over the last decade, the world has been facing economic crises. One major crisis was witnessed in 2008. In necessitated legislation of an act that would enable the government to help struggling industries survives the occasional economic depressions.Advertising We will write a custom essay sample on Subsidies to US Auto Industry specifically for you for only $16.05 $11/page Learn More In the same year, the congress passed into law a bill popularly known as the troubled asset relief programmed (Brunetti 11). This bill did not address a situation in any particular industry. However, it was made with the consideration of the difficulties that some important industries in the US economy were facing at the time. Thus, the government did not immediately move on to assist any industry that was facing problems at the time (Brunetti 13). Automobile manufacturers in the United States of America have always been a critical part of the economy. Collapse of companie s in the automobile manufacturing industry could have dire consequences for the US economy. The sector also employed more than a million people. Furthermore, the number of people employed in the automobile manufacturing sector remained significant despite the decline over the last few years Late in 2008, two automotive manufactures, Chrysler Corporation and General Motors appealed to the congress to approve assistance from the government to help them avoid certain liquidation in the face of financial insolvency (Brunetti 20). While presenting the case, the companies did not argue that they were doing well in the market, but they rather tried to illustrate their efforts towards avoiding financial crises.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Their argument was that the economy would face severe ramifications if one of the major automobile manufacturers were to undergo liquidation. No details of the projected plan were given, but the manufacturers cited substantial financial gains in general. After debate within the congress, senate, and state administration, the government decided to assist the automobile industry to avoid the impending liquidation for several companies (United States Congress, United States Congress 25). The World Trade Organization has anti subsidy rules that were formulated to ensure that there is a competitive international trade. In addition, the rules were established with the view of increasing free trade in the international arena. WTO ensured that its regulations did not cripple individual governments that wished to take corrective measures to salvage an economy that is on the verge of collapse. Thus, anti-subsidy laws are mild, and are meant to deter governments from subsidizing export and import commodities to the extent where the effect of the subsidies affects other countries and companies in the same trade. Otherwise, small subs idies for justifiable reasons are allowed. In addition, to regulate subsidization of products by the government, the WTO has formulated barriers in form of increased tariffs for subsidized products. These barriers are meant to be regulatory measures rather than settle scores among disputing countries. The problem is that the companies could not redeem themselves after the government gave the grants. They eventually had to be liquidated, and more money was used to establish new entities, with a significant amount of capital being contributed by the United States government.Advertising We will write a custom essay sample on Subsidies to US Auto Industry specifically for you for only $16.05 $11/page Learn More It is obvious that the government had acted to save millions of jobs that were at stake. However, through this action, the government was actually subsidizing the American automobile industry beyond what some financial analysts consider acceptable li mits. The situation at Chrysler and General Motors had been partially due to stiff competition. A bailout as substantial as that implemented by the US government seemed like interference with free trade. Most importantly, this action appeared to be a violation of the World Trade Organization’s guidelines on international trade. Other countries could consider bailing out their automobile manufacturing industries to even the scores. Alternating counteractive actions would then lead to hostile tax policies between trading partners, disrupting international trade. Thus, the United States domestic trade policies may be indirect sabotage of international trade (Webel 12). One of the conditions within the subsidies and countervailing measures as outlined by the WTO is that direct transfer of funds must be evident for the bailout to be considered a valid subsidy. In addition, the said subsidy must the directed towards a specific sector of the economy or industry. In that case, the US government’s action qualifies to be classified a subsidy. Furthermore, the US government issued funds directly to a few organizations. WTO requires signatories to its guidelines to avoid directly subsidizing those industries that manufacture goods purposely for export or import trade (Webel 18). That way, the international trade is protected from machinations of any single country. Other regulations within section II of the trade agreements ratified in Uruguay urge countries to desist from subsidizing major industries such that there is a significant effect on trade partners.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More WTO rules also specify that for a bailout to be considered a subsidy, the law of the particular country must isolate the entities being subsidized as the only industries eligible for the particular subsidy. Moreover, WTO considers any benefit of an industry acquired through foregoing of debts owed to the government amounts to a valid subsidy. Since the program was directed by congress in the United States, it qualifies as a valid subsidy to companies that deal in merchandise meant for export. The actions of the United States government contravene almost all guidelines of WTO Uruguay convention regulations (Webel 21). Any member of WTO or automobile manufacturer, which wishes to file a complaint with WTO, may prove several facts to validate its claim. One of the conditions is that the complaining entity may prove that the defendant nation caused a significant setback to the complaining entity’s domestic operations or progress. Secondly, the complaining entity may prove that th e defendant nation hindered the benefit of the complainant by subsidizing a certain industry beyond the acceptable maximum level. Finally, the complaining entity may prove that the defendant nation had prejudice in its action to subsidize a competing rival of the complainant. Several setbacks would face any country or automobile manufacturer that would wish to challenge the United States Bailout program to the WTO as a violation of WTO agreements. For WTO to accept the complaints by any country or automotive manufacturer there must be enough proof to validate the claim (Webel 24). One of the requirements is that the complainant in the case must proof that the United States government subsidized goods meant for export directly. Furthermore, there should be proof that the United States government benefited the companies that were subject to assistance. It is difficult to determine whether there was any benefit for the American automotive manufacturers. The complex procedures and disso lution of the two companies is difficult to analyze, particularly because the old business entities were eventually dissolved and new ones formed. If countermeasures were to be applied by the WTO, the implications of the past subsidies would remain, and the said measures would act just as a deterrent to any future violation of international trade laws. This means that the complainant would not be compensated for any damage caused by the subsidies. For this reason, the complainant may not be motivated to file any complaint against a subsidization that has already occurred. The lack of any financial award by WTO arbitration is a major setback to the international law (Webel 26). As of now, the subsidization of the two American automakers by the government of the United States remains a perceived action rather than a proven fact. Although is it is difficult to proof guilt or take action against the united states of America for the perceived misconduct, there are implications arising fr om reaction of the international market, foreign automotive manufacturers, and other countries that are preparing themselves to take similar action, should multinational companies operating in the country require government assistance. When subsidies are given to an industry with a significant share of international market, a degenerative effect is likely to occur. Competitiveness of companies within the international market becomes impaired by such actions. Apart from the automotive manufacturing industry, other sectors are likely to suffer from changes in trade tariff. Many of the countries involved in substantial trade with the United States may raise tariff so imports from the United States in response to the unfair subsidization of the United States motor industry. However, action by aggrieved parties may also be hampered by the economic power of the corporations that were subsidized. General Motors Corporation and Chrysler are comparatively smaller than the largest automobile manufacturers in the world (Webel 29. However, they operate on a multinational scale and employ citizens of their host countries. Closure of the two companies may make the companies lay off their workers in some of the countries. Thus, any country with interest in either General Motors or Chrysler is not likely to file any complaint against the automobile makes since such an action goes against their interest. Following the support of Chrysler and General Motors by the American government, some of Europe’s automobile manufacturers have been taking similar action though on a smaller scale. It is the difficult for WTO to impose any barrier to such action since no action has been taken against the US government decision to bailout domestic automobile manufacturers. Germany gave one and half billion Euros to Opel, a General Motors corporation subsidiary. On the other hand, France tried to influence Renault by giving the company a loan of about eight billion Euros. Britain also ga ve a loan of three million dollars to domestic automobile manufacturers (Lincicome 9). All these moves by European countries were reactions to the subsidizing of general motors and Chrysler by American government. In turn, the companies that received the said favors, continued to take actions that would indirectly benefit the countries that offered loans and bailouts. Such actions may cause mistrust and therefore fragmentation of global automobile trade. The practice may also spread to other industries, and eventually cause a global depression. It can be argued that the actions of countries that have significant manufacturing industry are a response to the actions of the United States. On the other hand, such actions may be considered efforts by the governments to salvage one of their most important industries from collapse. However, all these subsidies given to the automobile manufacturing industry around the world are a violation of WTO rules in one way or another (Lincicome 14). On careful analysis of the procedures and circumstances, one may choose to consider the actions as a part of a commercial war among the countries that host competing manufacturing industries. Although grants were given to several automotive manufacturing industries around the world, it is important to consider the circumstances of the period within which relief was offered to the manufacturers. The year 2008 had an economic depression that threatened to bog down many industries apart from the automotive manufacturing sector. In the case of United States, it is reasonable to take into account for the size of the automobile industry and its role in the economy. The jobs that Chrysler Corporation and General Motors offered to the public were too many for the government to risk losing. Such a big loss of jobs would have serious political and financial implications for the country. Thus, logic dictates that any government in a similar position would have gone to such a length to rescue t he automotive manufacturing industry. It is also possible that if the United States had sought permission or exemption from WTO or other countries with significant automotive manufacturing sector, it would have taken too long for the bailout programs to be useful to the situation in the industry (Technological innovation and public policy: the automotive industry 45). Similarly, it would have taken too long for United States government to present an amendment proposal to the WTO for consideration to favor its remedy for the automotive industry. Thus, to many observers, the United States did what was in the best interest of the citizens. Furthermore, the United States has other subsidy program for automotive makers other than the plan to bail out Chrysler and General Motors (Chong 45). For example, the United States government has endeavored to provide financial assistance to companies that sell automotive parts to Chrysler and General motors’ in order to maintain smooth trade for the organizations. In turn, manufacturing process at General motors and Chrysler is smooth. Through this mechanism, losses are avoided. However, some of the organizations that benefit from this plan are foreign companies in which the United States government has little direct interest. One can then conclude that the United States bails out companies within the country, but also provides similar assistance to companies outside the country (Chong 53). In such a situation, there is no substantial reason to allege that the United States government had prejudice against some foreign manufacturers. However much the United States government was justified in implementing its contingency plan in the case of automobile manufacturers, there is need to follow trade rules to ensure that there is cooperation in international trade (Lincicome 15). It is important for the country, which is the leading economic power, to show faith in rules and regulations that it has previously championed. The Uruguay concessions were formulated under the patronage of the United States and other leading economic powers. Consequently, it becomes hypocritical for the champion of the said laws to be the first to breach them. Although one cannot conclude that the subsidization of automotive industry in Europe was a reaction to the American case, it could still be a possibility. Thus, whether the government of the United States had a credible reason to bailout its automotive manufacturing industry or not, the fact remains that the US government breached international trade laws. Works Cited Brunetti, Paul. â€Å"United States Economic Policy: US subsidies in the context of World Trade Organisation.† United States Economic Policy 33.5 (2011): 7-24. Print. Chong, Michael D.. Study of the crisis in the automotive sector in Canada report of the Standing Committee on Industry, Science and Technology. Ottawa, Ont.: Canada Parliament House of Commons, 2009. Print. Lincicome, Scot. â€Å"Coun tervailing Calamity How to Stop the Global Subsidies Race.†Policy Analysis 11.7 (2012): 1-36. Print. Technological innovation and public policy: the automotive industry. Basingstoke, UK: Palgrave Macmillan, 2011. Print. United States Congress, United States Congress. Congressional Oversight Panel September oversight report: the use of TARP funds in the support and reorganization of the domestic automotive industry.. Washington: U.S. G.P.O. :, 2009. Print. Webel, Baird. â€Å"Troubled Asset Relief Program (TARP): Implementation and Status.† Congressional Research Service36.5 (2012): 4-33. Print. This essay on Subsidies to US Auto Industry was written and submitted by user Taraji Whitfield to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

5 Reasons You Feel Trapped in Your Job

5 Reasons You Feel Trapped in Your Job No matter how much you love your job, it’s easy to feel trapped. You wake up going through the motions and dreading getting dressed; you just want to crawl back into bed and stay home. This is human, and it happens to us all.But if you really do feel trapped and find that you’ve completely lost track of your ambition or your drive, this list might be helpful in sorting out why- and helping you to fix it.1. Everybody else is better than me.If you feel that everyone is more capable, more skilled, or more talented than you are, youll edge yourself out of the spotlight and into isolation. Instead of constantly comparing yourself to your coworkers, remember that everyone is different. Their skills may be flashier, but that doesn’t mean that yours are any less useful or important. Concentrate on doing what you do best and apply yourself to shoring up your weak spots. And trust, deep down everybody else probably feels the same!2. You tell yourself its tough out thereThe economy is terrifying. Debt levels and unemployment have reached terrifying highs. You know you’re lucky to have a job, so you couldn’t possibly look anywhere else. You’d be crazy to leave! Right? Wrong. The market is always scary. If you truly believe you can do better, more rewarding work, you owe it to yourself to try. Sometimes believing it can happen is enough to take the step!3. I should just wait untilUntil the new year. Until I have my next review. Until I’ve been here for three years. Until, until, until. Biding your time and waiting for opportunity to come to you is only a good strategy if you’re saving money, say, to start your own business. Otherwise, you should make decisions based on what’s best for you overall, not necessarily what leads you down the path of least resistance.4. You dont know what else you wantIt’s hard to get what you want when you don’t even know what that is. But you owe it to yourself to find out. Don’t just stick with the devil you know. Ask yourself the hard questions and then do something about it if you don’t like the answers.5.   I have to prove myself.No, you don’t. You have to follow your path and find a way to do your best work- regardless of whether you feel your version of life matches up with someone else’s checklist of success.You have to be brave enough to get yourself un-trapped. No one else will do it for you.

Empirical Paper Assignment Research Example | Topics and Well Written Essays - 750 words

Empirical Assignment - Research Paper Example The rate however increased in five states and remained constant in 11 other states. Kentucky recorded the most significant percentage decrement, though the state’s unemployment rate remained above the nation’s average value. There were additional job opportunities in the state in October but some people also left their jobs, with retirees as examples of those who left their jobs. The lost jobs in Kentucky were however filled with new employees and not really lost from the economy. Kentucky recorded the greatest fall in unemployment rate with a deviation of 0.5 percent while four other states realized a decrease of 0.4 percent in their unemployment rates. Unemployment rates per state remained lower that national statistics in Rocky Mountain States. On the national level, unemployment rate reduced by 0.1 percent, from 5.9 percent in September and this resulted from creation of 214000 new jobs. The report includes states’ unemployment rates for September and October of the year 2014 and for the month of October 2013 (Sparshott 1). The author’s statistics are reliable because data and generated graphs from FRED support them. Below are graphs of two indicators of employment rates, as retrieved from FRED databases that support the author’s report. The graphs, inteprated together, offers information that is consistent with Sspartshott’s report and therefofe support the author’s viewpoint. From graph 1, it is evident that employment rates have been increasing, steadily, over the past one year. Consistency in the increament can be used to forecast further increament to october and the rest of the months in the year 2014. Consequently, it can be concluded that the number of employments in the private sector improved from its value in September 2014 into October 2014. The graph of number of employment in the public sector is however unstable and suggests a decrease in employment rate from September 2014 to October 2014. Rate of

Contract and Patent Law Assignment Example | Topics and Well Written Essays - 750 words

Contract and Patent Law - Assignment Example public, nor its components and usage described in a publication for a period of one year before the invention, nor offered for sale for a period of one year, before the filing for a patent (Cheeseman, 2011). The other rule guiding the granting of a patent is the fact that the invention must be useful and able to perform the intended purpose. Additionally, the invention should not be exactly similar to a pre-existing product (Cheeseman, 2011). However, an improvement on a previously existing product that is non-obvious is also patentable. Thus, based on Billy’s Towrack invention, it is patentable since the invention is useful for carrying sporting equipment, it is a non-obvious improvement from the already existing tows in that it is lighter and has only the single wheel. Thus, Billy can successfully obtain a patent for this device. 2. Under the requirements of the trademark laws, a symbol, a word or a name can only be registered as a trademark if it is able to differentiate the products or services offered by one entity from those offered by others. The symbol or the name used should not be confusing to the consumers, to an extent of not knowing the difference between one product and the other (Cheeseman, 2011). Additionally, the symbols and names used should not be similar to those of an already existing product, and neither should they be deceptive on the sides of the consumers. Based on the name used by Billy for his invented device, Towrack is just but a general name, which does not serve to differentiate the device from the common ones of its kind. Thus, Billy may not obtain a trademark by using this name to identify his product, since it is not distinctive to the consumers.

“On Being Sane in Insane Places” Essay Example for Free

â€Å"On Being Sane in Insane Places† Essay It was very interesting to read about Rosenhans study and how psychiatrists, who go through big coursework and training, could wrongly classify a patient. It surprised me how some psychiatrists couldn’t say they don’t know what’s wrong with patients instead they could possibly diagnose someone as insane. Though reading this chapter I found the strange things from Rosenhan’s study that was hard to believe. Slater states, â€Å"The strange thing was, the other patients seemed to know Rosenhan was normal, even while the doctors did not. † (69). I believe patients can know that better than doctors because they are in that situation already and some doctors don’t analyze their patients carefully to know what’s actually happening with them. For example, if someone studies about one culture doesn’t mean that person knows way better that person who actually lives with that culture. Both chapters I found interesting because it relates to my life very well. I found out Elliot Aronson, Darley and Latane all kind of try to show that people needs to find reason for their actions. I believe each person as a human have to help everyone no matter what. Darley and Latane’s mention is about how to help someone in an emergency that relates with Catherine Genovse murder. Slater says, â€Å"You must interpret the event as one in which help is needed† (95). We read about Catherine’s murder and saw that after she had asked for help, someone yelled, leave that girl alone, instead of helping, and the only thing that happened was that the killer ran away (95). I agree with Darley and Latane’s that we need to know which help is needed and what help is not. The person may have helped with getting the killer away, but Catherine needed the help the most, so she wouldn’t die. I been in so many situations that someone needed my help and I helped as much as I could, but knowing what helped was needed help me a lot. Leon Festinger talked about how people really pay attention to what is going on in their life and around them. I think some people just pay attention to what they want. Its true most of the people like to listen to people who agree with them and ignore who doesn’t. The chapter also discussed how people can believe in something they can’t prove such as God working through  a person. I think even for believing a god it has many prove to make a person to believe it. I believe for believing on something need to have something as prove. This section is a really great one however I didnt prefer how the experiments were described. I additionally didnt prefer the experiments and there result. Harlow was a fascinating man and I preferred how the author discusses the experimenter and how they grew up on the grounds that it permits me to understand their conclusions about their examinations and why they are imperative to them. I thought it was interesting that the monkeys adored the cover yet when they were displayed a face they might be scared and yell or cry about it. What I establish fascinating was that when they were babies they existed like a typical life however when they got older they went insane. A percentage of the monkeys were introducing a mental imbalance, gnawing them, and one of the monkeys bit off his hands. This discovering was entertaining since Harlow was supporting the surrogate moms and this wound up going terrible for him. I wish the author might stick more to the investigations and less to her editorializing. I cant agree with what Zola-Morgan does say â€Å"our human lives are intrinsically more valuable; monkey studies yield information that helps those lives† (153). Of course humans are more valuable than the monkeys, but still monkeys are animals and I think it’s so cruel to hurts them only because to do the experiment. If that kind of research saved the life of loved then I will be okay with that. I still feel awful with doing that type of experiment on poor animals that didn’t do nothing wrong.   This is another important finding because it just shows that psychiatrists may not have any idea about what they are doing, but no one questions them because of their authority. Of course after whom goes through big coursework and training, don’t expect someone to tell them they are wrong but from Rosenhan’s study they may be wrong too.

Reducing Gun Violence Essay examples -- The Need for More Gun Laws

Gun violence has reached an all-time high. After the shooting at Sandy Hook Elementary School, widespread concern forced legislators to take a second look at our gun laws. When twenty children and six educators were gunned down, many citizens were outraged and begged authorities to pass more stringent gun laws because with fewer guns, there could possibly be fewer incidents involving gun violence. Many people believe that the widespread availability of guns is making society unsafe. Each year, nearly 100,000 Americans are shot, 32,000 of them die, 47 children are shot every day, and eight of them die, according to the U.S. News Digital Weekly. In order to solve this problem, more stringent background checks should be required by all applicants, restriction and enforcement on the sale of guns at gun shows need to improve, and the availability of automatic weapons should be limited. More stringent background checks should be obligatory for all gun purchases, and a database should be kept on a state and federal level, which could be funded by the federal government. According to Messer and Cartwright, background checks are a safer way to reduce the chances of endangering families. People who are against new laws misinterpret background checks with the belief that they can infringe on the rights of responsible gun owners. In actuality, background checks prevent known felons and unstable persons from acquiring weapons. The loophole with private sales of weapons, however, is that felons and mentally unstable buyers can purchase from a private seller without a background check. Because of the loophole, private sales should be documented. Even seventy four percent of the National Rifle Association members and 87 percent o... .... MasterFILE Elite. Web. 18 Oct. 2015. Goldberg, J 2012, 'The Case for More Guns (And More Gun Control)', Atlantic Monthly (10727825), 310, 5, pp. 68-78, Literary Reference Center, EBSCOhost, viewed 7 Oct. 2015. McInery, Thomas K. "Keeping Children Safe from Gun Violence." Vital Speeches of the Day 79.7 (2013): 209-211. MasterFILE Elite. Web. 4 Oct. 2015. Messer, Luke, Cartwright, Matt. "Should All Gun Sales Require Background Checks?." U.S. News Digital Weekly 5.20 (2013): 16. MasterFILE Elite. Web. 18 Oct. 2015. Tormey, Travis J. â€Å"NJ Gun Laws- Both Registration and Criminal Charges† New Jersey’s Criminal Defense & DWI Attorney, 8 Oct. 2015. Zarych, John J. â€Å"The Current State of New Jersey’s Gun Laws.† EIN Presswire, 13 August 2009. Web. 18 Oct. 2015. â€Å"Homicide Statistics† Australian Institute of Criminology, 21 February, 2013. Web. 8 Oct. 2015

Math: Mathematics and Favorite Subject

I know very well what my weak point is. I am not a writing women; I am in love with numbers. Mathematic is my favorite subject since I began to study. My mother is an accountant, and my father is a civil engineer. The first thing that I teach me was to count 1 to 10 with only one year and half. Math is my favorite subject, for three reasons, this subject-matter pushes me to think carefully, be organize when solving math exercises, and the most important numbers are easy to me.For these reasons I enjoy every single day in my job. First of all, it helps me in my life because I learn to think and concentrate clearly. When I have a Math problem, I read it and try to think in a easy solution. This helps me understand the situation. When I have all the data, I write the formula. I always try not over thinking it, because this can affect the result. My mother told me that math is like a puzzle, like a game. Second, I am extremely organized with numbers.I always follow all the rules and keep the solutions steps by step in my records. The result need to be clean, which means that anyone can understand the result without my presence. By the time that I have the solution, I feel free and comfortable. I can only hear in my head, I win, I win!!! The third and final reason is that numbers are easy for me. Equations, problems, geometry, addition, multiplication and rest are fun to me. I see this subject as hobby not as a class. Numbers are infinite; they are like the stars in the sky.Galileo Galilei said that, â€Å"The great book of nature is written in mathematical symbols†. In conclusion, Math was my life in Kinder Garden, Elementary School, Middle School, and High School, will be the same for the rest of my life. This class showed me how to put my brain to work. I learned how to work and study at the same time like a game. Numbers are easy and bring me happiness every day since I was a little girl. Thanks to my mother, father and teachers who always supported in th is subject, I am a good mathematician today.