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Paper On Situation Based Economic Theories

   

Added on  2019-09-30

9 Pages1719 Words303 Views
International economicsName of the student:Name of the University:Author note:

1Table of ContentsIntroduction:...............................................................................................................................2Analysis:.....................................................................................................................................2Key issues and the underlying issues:....................................................................................2Facts that affect the identified issues:....................................................................................4Tentative solution to the problem and implementation:........................................................4Follow up and contingency plans:..........................................................................................4Conclusion:................................................................................................................................4Reference:..................................................................................................................................6

2Introduction:Ron Kirk was the then US Special Trade Representative during 2011 and once the signingceremony was over, he received his first heads up from the US Department of Commercesecretary. It was Solar World Industries America, which is the largest solar panel producer inUS brought in allegation against the Chinese firm of solar panel seller that they are subject tounfair trade and selling solar panels to US consumers promoting an unfair competition(Everycrsreport.com, 2019). This paper is aimed to analyse the same situation based on theeconomic theories and considering the non-profit academic settings given for analysis.Through identifying the key issues, this paper will highlight the facts that affect the identifiedissues and their tentative solution for the problem and implementation of the same. Throughidentifying the follow up and contingency plans this paper will draw conclusive statementregarding its finding. This paper is aimed to analyse the Analysis:Key issues and the underlying issues:There has been major set back for the US solar panel producer since 2011 once it has beenfound that Chinese solar panel producers and the government penetrating the US market withthe aim to capture the market. With the extensive export subsidies by the Chinesegovernment and rapid growth in engineering technology backed by the low labour cost,chinse solar panel producers has been able to capture 61% of the US solar panel marketforcing them to face fall in revenue, average revenue per sells and revenue per watt ofcapacity (idsa.in, 2019). Though the US government supports the solar panel manufacturingunit, yet in front of the Chinese manufacturers, US producers are tiny in operation and theyare not even able to compete with the Chinese producers. This is one of the main issues thathas can be identified from the given article.

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