Question

the u.s. government has threatened to increase tariffs on european luxury automobiles because of a trade imbalance between the united states and the european union. for american automakers like gm and ford, this action would reflect

Answer 1

The action of the U.S. in imposing increase tariffs on import will reflect a positive result from regulatory environmental force.

The decision of United State to increase the tariff would be a negative affecting regulation for firms that want to export therein.

The decision of United State to increase the tariff would positive for local firms like Ford because the competition from foreign companies would decrease and thus, sales are likely to be positively pushed.

Therefore, the answer is C because the action of U.S. in imposing increase tariffs on import will reflect a positive result from regulatory environmental force.

"The option includes:

• a reactive strategy that would harm the technological environmental force
• proactive maneuver to manipulate the social environmental force
• e positive result from regulatory environmental forces."

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