Key Term: Subsidies
My key term for this week’s discussion board post talks about subsidies. This term relates very well to one of the reasons I chose to research Italy for my Global Business Cultural Analysis due to the fact that the United States does not offer much assistance to this country. Our text defines subsidies as special privileges offered by the government in order to attract businesses to a region or to provide them with funding to operate successfully. A nation’s government may provide tax breaks, lower the cost of required land, or offer other money saving techniques to businesses that it wishes to attract or maintain in a region. (Satterlee, p. 76) It is also important ...view middle of the document...
S. imported steel, it literally overwhelmed the U.S. market resulting in price plummets and forcing companies to cut back on production significantly. And to name a few, some of the U.S. companies that officially filed complaints include IPSCO Steel Inc., Gulf States Steel Inc., U.S. Steel Group of USX Corp., and Bethlehem Steel Corp. Eighty percent of shipments of cut-to-length plate are produced by the U.S. companies mentioned collectively.
The files were supported by the United Steelworkers of America; the union that represents steelworkers in the U.S. And the actual filing process involves a four stage process that can go way past a year.
Ultimately, if government trade officials think that foreign steelmakers have broken trade laws and hurt the U.S. steelmakers, then they may impose import taxes on future shipment to the U.S.
It’s definitely clearer to me now why the U.S. takes a back seat in assisting Italy and other countries with regard to offering subsidies.
Arab, P. (2002, May 26). Spaghetti spat: Ottawa has appetite for food fight over U.S. pasta subsidies. Canadian Press NewsWire. Retrieved from http://search.proquest.com/docview/359689968?accountid=12085
Barba Navaretti, G., Santarelli, E., & Vivarelli, M. (2002). The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economies. Applied Economics, 34(12), 1563-1569.
By, C. A. (1999, Feb 17). U.S. steelmakers file dumping charges. Wall Street Journal. Retrieved from http://search.proquest.com/docview/308355183?accountid=12085
By, J. T. (1998, Jan 07). Dairy farmers must finance their subsidy, Italy insists. New York Times (1923-Current File). Retrieved from http://search.proquest.com/docview/109879692?accountid=12085
Dinmore, G., & Segreti, G. (2012, August 6). Italy's solar sector fumes at subsidies. Financial...