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Assignment Solutions, Case study Answer sheets <br>Project Report and Thesis contact<br>aravind.banakar@gmail.com<br>www.mbacasestudyanswers.com<br>ARAVIND – 09901366442 – 09902787224<br><br>Business Ethics<br><br>Case Studies<br>CASE STUDY (20 Marks)<br>General Motors, the world’s largest automobile manufacturer, accused Japan of currency manipulation giving its automakers a huge competitive advantage in the US. market and causing significant harm to the US auto industry. The company charged that Japan’s weak ‘yen policy’ gave its exporters an outright annual subsidy of up to 12,000 dollars per vehicle exported to the United States, giving an expected windfall of two billion dollars to Japan’s automakers “This subsidy has both facilitated the expansion of Japanese companies in the US and succeeded in keeping American-built automobiles out of Japan,†GM’s chief economist Mustafa Mohatarem told a congressional hearing. The impact of Japan’s sustained currency manipulation is a keyreason for a plethora of problems facing US-owned automakers, Mohatarem told a US-Japan trade hearing held by the House Representatives’ ways andmeans committee “However, it is frustrating, really unbelievable, to many of us in this business and the American manufacturing sector that the Japanese government’s extraordinary $420 billion currency manipulation program has gone unquestioned and unchallenged, while China has become the sole focus of attention as the threat to American competitiveness,†he said. Lawmakers criticized the government for not being tough with Japan on its currency policy and sought an explanation from David Loevinger, deputy assistant secretary at the US treasury, among other government officials present at the hearing.<br><br>Answer the following question.<br><br>Q1. Is there any ethical issue involved in this case? If so, explain the same.<br><br>Q2. What remedies do you suggest to ensure a proper approach? Discuss.<br><br>Assignment Solutions, Case study Answer sheets <br>Project Report and Thesis contact<br>aravind.banakar@gmail.com<br>www.mbacasestudyanswers.com<br>ARAVIND – 09901366442 – 09902787224<br><br>
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Business Ethics Case Studies CASE STUDY (20 Marks) General Motors, the world’s largest automobile manufacturer, accused Japan of currency manipulation giving its automakers a huge competitive advantage in the US. market and causing significant harm to the US auto industry. The company charged that Japan’s weak ‘yen policy’ gave its exporters an outright annual subsidy of up to 12,000 dollars per vehicle exported to the United States, giving an expected windfall of two billion dollars to Japan’s automakers “This subsidy has both facilitated the expansion of Japanese companies in the US and succeeded in keeping American-built automobiles out of Japan,” GM’s chief economist Mustafa Mohatarem told a congressional hearing.
The impact of Japan’s sustained currency manipulation is a keyreason for a plethora of problems facing US-owned automakers, Mohatarem told a US-Japan trade hearing held by the House Representatives’ ways andmeans committee “However, it is frustrating, really unbelievable, to many of us in this business and the American manufacturing sector that the Japanese government’s extraordinary $420 billion currency manipulation program has gone unquestioned and unchallenged, while China has become the sole focus of attention as the threat to American competitiveness,” he said. Lawmakers criticized the government for not being tough with Japan on its currency policy and sought an explanation from David Loevinger, deputy assistant secretary at the US treasury, among other government officials present at the hearing.
Answer the following question. Q1. Is there any ethical issue involved in this case? If so, explain the same. Q2. What remedies do you suggest to ensure a proper approach? Discuss.
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