Watch the video Volvo Cars: CEO: It’s Important to Build in the U.S. from this link:
https://www.bloomberg.com/news/videos/2017-01-09/volvo-cars-ceo-new-u-s-plant-is-near-our-customers
Then, in a brief paper answer these questions:
1. Reflect on the global auto industry and the U.S. market in particular. How would Adam Smith view the promises made by President-elect Trump to penalize automakers that fail to produce in the United States? Discuss your response from the perspectives of different stakeholders.
2. Swedish automaker Volvo recently announced plans to open a new plant in the United States. Comment on the strategy Volvo is following. Why is it so important to Volvo to have a presence in the United States? What does the company hope to gain from this investment?
3. In a recent interview, Volvo CEO Hakan Samuelsson commented on the need for a clear trade policy and supportive investment climate. Reflect on his comments and discuss the implications of a country’s investment climate on its ability to attract new investment.
4. Reflect on globalism vs. nationalism over the past 20 years from the perspective of employment in the USA. Which has led to more jobs for workers in the USA?
5. Why is unemployment currently at less than 4% in the USA (effectively full employment)? Do you think using the levers of trade control in an effort to support local workers has been successful over the past 2 years? Why are there more jobs when pundits predicted there would only be automation but no new jobs? Do you feel some journalists are ignorant of real-world business outcomes?
