Question

How has Nucor been affected by Global competition (Globalization)? Is it a level, competitive playing field around the world that is free and fair for all competitors? Please provide an analysis of US Government actions to support the steel industry

Answer 1

There has been new players emerging which has made competition difficult for US steel industry.US has faced competition with japan ,Korea, India , Brazil ,Mexico.The number of countries producing steel has gone up.Marketing and technological innovations have contributed to this.US could not adjust to competition by korea and japan.

The last few decades has not only seen global steel production rising but also the rising share of developing countries in steel production.There was restructuring of the steel industry.All round development have altered competitive positioning of the nations.With technology and trade there has been global relocation of the industry.

US government has introduced tariff to protect steel industry.Tariffs in the form of higher prices may be passed to producers and consumers.Tariiffs will increase the cost of materials  and reduce private sector output.Government will get more revenue as imports enter domestic market.Because of tariffs on imported steel , the industry got protection.