Economics Group work

This situation is set up to give you a real-world look at the complex nature of international trade negotiations, especially for multinational companies.

The following articles give you the background for the next situation.

https://www.forbes.com/sites/johnkotter/2019/03/27… (Links to an external site.)Links to an external site.

https://www.reuters.com/article/us-usa-trade-steel… (Links to an external site.)Links to an external site.

https://www.politico.com/story/2019/03/27/trump-au… (Links to an external site.)Links to an external site.

https://www.forbes.com/sites/kenrapoza/2019/03/26/… (Links to an external site.)Links to an external site.

You work for Nucor Steel. Your CEO has asked to present the board of directors a set of recommendations for the company’s response to the steel tariffs.

Information for your response:

Nucor has steel plants around the world

This includes the USA, Brazil, China, Germany

Nucor has customers for the products around the world

The 3 major products of Nucor are automotive steel (33%), sheet metal (33%), and construction steel (33%).

Brazil and China focus on automotive steel

Germany focus is sheet metal

USA construction steel

The customers for each product are the following:

automotive steel–US and Germany

sheet metal–China and India

construction steel—Brazil and China

Nucor has access to multiple politicians that can make recommendations to the President

Nucor will continue to produce in each country.

This is due to the nature of steel production.

What I am looking for is a set of recommendations for the board of directors in regards to the company’s position on tariffs and trade negotiations. I want an actual recommendation for the company to state publically and what the lobbying position should be for the near term. Keep in mind that Nucor MUST continue operations in all countries. Also, keep in mind the steel tariffs have a positive public image. You must give a recommendation for the 3 divisions (the products) and the reasons for these recommendations.

This is a very complicated situation, and you will need to make sure you keep in mind that these tariffs do not happen in a vacuum. This means other countries will also place tariffs.