Question

Discussion Case: Political Action by the U.S. Steel Industry, 2015-2018

1) did the steel industry act appropriately as a participant in the political environment when it sought economic protection from foreign steel imports? 2) What political strategies, as shown in Figure 8.2, did the steel industry use to gain tariff protections? 3) What other political strategies could the steel industry have used to promote their interests and how? 4) What levels of corporates political involvement, as shown in Figure 8.5, are evident in the case? 5) Should Chinese and other country's steel producers be permitted to engage as a political participant in the U.S. political environment to protect their economic interests?

Answer 1

1. Did the steel industry act appropriately as a participant in the political environment when it sought economic protection from foreign steel imports?

The steel industry acted appropriately as a participant in the political environment when it sought economic protection against foreign steel imports because, they followed the correct and legal strategies for influencing government decisions. The companies used many different types of strategies to bring the issue into the public eye and to get the government to act in a certain way. The overall effects of the strategies seems to have worked with the increase on foreign imports enacted by the Trump administration.

2. What political strategies, as shown in Figure 8.2, did the steel industry use to gain tariff protections?

The steel industry used various types of Information, Financial-Incentive, and Constituency-Building strategies to gain tariff protections.

Information Strategies:

• Direct Communication
  5. Steel companies sent briefs to congressional members and their staff
• Expert Witness Testimony
  5. Steel companies arranged for various opportunities where they could testify before congressional committees

Financial-Incentive Strategies:

• Political Contributions
  5. Some steel companies increased the amount of money given to PACs

Constituency-Building Strategies:

• Legal Challenges
  5. Companies filed complaints with the U.S. Commerce Department as well as the International Trade Commission
• Stakeholder Coalitions
  5. Created the Manufactures Coalition for Trade Enforcement coalition with manufacturers of aluminum, textiles, fabric, fiber, and resin.
• Advocacy Advertising
  5. Steel companies launched publicity campaigns to increase public awareness of the issue.

3. What other political strategies could the steel industry have used to promote their interests and how?

Some other political strategies that the steel industry could have used to promote their interests are an increase in the number of lobbyists and the use of economic leverage. By increasing the number of lobbyists for the steel industry there would be more people who would be informed of the issue and knowledge might have been gained through associations with various political figures that might have led to an opportunity for the use of economic leverage. Economic leverage is a very useful tool if the steel industry had found an area where their involvement could be used to increase the tariffs on foreign imports for example steel companies could offer to decrease prices for military construction in exchange for the tariffs.

4. What levels of corporate political involvement, as shown in Figure 8.5, are evident in the case?

The third level of corporate political involvement the Aggressive Organizational Involvement is clearly shown as there is executive involvement in trying to increase tariffs on foreign imports, An increased involvement with industry working groups and various taskforces such as the creation of a coalition. As well as the fact that they are trying to influence public policy development with the increase on tariffs.

5. Should Chinese and other country’s steel producers be permitted to engage as a political participant in the U.S. political environment to protect their economic interests?

Foreign steel producers should be able to engage as a political participant in the U.S. political environment in order to protect their economic interests because foreign imports effect a large portion of our economic system in the U.S. and it would be detrimental to the countries interests if foreign companies stopped importing goods to the U.S. because they had no voice in our political system. Though other countries should have the same influence as U.S. companies.

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