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Week 4: Case Analysis As automakers establish production operations in multiple countries around the world, and rely on suppliers from numerous countries, the question of

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Week 4: Case Analysis As automakers establish production operations in multiple countries around the world, and rely on suppliers from numerous countries, the question of tariffs and quotas becomes more important. What happens if a country places a tariff or other trade barrier on imported cars? Consider for example, how consumers would react if the U.S. charged a tariff on every car that is imported from Japan. What would be the likely reaction of Japanese automakers? What would American producers do? Consider whether such as tariff is \"fair.\" Who really pays the tariff? Who benefits from the tariff? Who would benefit from free trade in automobiles and car parts? Explore the decision by the state of Tennessee to offer German automaker VW incentives totaling over $165 billion to open a new factory. As part of the deal, Tennessee provided a grant of $12 million to train workers for the new VW facility. Is this fair to U.S. automakers? How does it affect the competitiveness of U.S. companies? Should Tennessee offer similar incentive packages to U.S. companies to encourage them to locate production in the state? Why or why not

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