Situation. D. Prepare a report on the case

Role-Play 2

D. Prepare a report on the case.

B. In and around your house look for any major items not made in the Russian Federation. Explain why these items, rather than their Russian-made counterparts, were purchased.

A. Find examples that show how trade restrictions affect multinational corporations.

Critical Thinking Tasks

C. Explain how the European Economic Community (WTO, NAFTA, etc. …) influences trade around the world.

Take part in a TV panel discussion programme on trade restrictions on Japanese cars. A TV commentator interviews representatives of a government panel and an impartial panel. Study the arguments opponents used to support their positions. Douglas Frazer, president emeritus of the United Auto Workers and Reubin Askew, United States special representative for trade negotiations between 1971 and 1981, disagree on limiting imports of Japanese cars.

Barry Sting, a popular TV commentator. You are a well-known showman. You organised a panel discussion programme on TV. Several members of the public are invited to give their opinions. The questions for discussion were sent in by the viewers. Authors of the most interesting questions were invited to the studio. The chairperson (you) reads out the questions and directs the panel. Open the discussion by describing the members of the panel. Elect a buzz group – a small group of 3-5 persons to work out and note down all possible arguments and opinions in favour or against them. A buzz group will also present a summary of the discussion at the end of the programme. Mind that interviewing people involves asking for questions and expressing personal opinions. Open-ended-questions should prevail over close ones (requiring “yes” or “no” answers). Be polite yet firm.

Make use of the helpful phrases:

· My function is to act as presiding officer and to introduce those who …

· May I introduce Mr. … who is going to tell us about …

· All right. Who will start the ball rolling? [4]

· Let’s get this right from the start …

· What’s your alternative proposal?

· How / What do you feel (about) …?

· Do you mind my asking …?

· Might I put it like that?

· Could you be more specific, please and tell us why...

· What exactly do you mean by …?

· Any other questions? No? Thank you very much.

Douglas Frazer thinks the United States government should pressure the Japanese to build cars here in order to save jobs for United States workers. Although Frazer supports free trade in principle, he thinks that free trade no longer operates fairly. The Japanese impose many subtle restrictions on trade. The United States open market policy has worked against the job security of the United States auto worker. Frazer acknowledges that United States car makers share part of the blame for the flood of Japanese imports. United States companies continued to manufacture more profitable large cars too long, neglecting the small car market. Frazer fears that if some restraint is not put on the Japanese, the flood of imports will increase until the Japanese have exhausted their capacity to export cars. Frazer claims that he does not approve of trade restrictions that limit consumer choices. Frazer would, in certain cases, however, recommend either a marketing agreement to limit imports or legislation requiring that Japanese car manufacturers whose sales volume in the United States is high use numerous parts made in the United States. If such measures were not successful, Frazer would support tariffs or quotas. As layoffs in the three big United States companies continue, Frazer thinks the time has come for the administration to get tough. If the United States administration would pressure the Japanese companies, it would be a step in the right direction.

Make use of the helpful phrases:

· It’s hardly necessary for me to say that I consider it a very great honour to be asked to occupy this platform for a few moments.

· ... to say nothing of...

· There’s another matter I’d like to bring up....

· The general feeling is that... [5]

· There’s one more thing we’d like to consider.

· Let’s get on. [6]

· May I have a say? [7]

· That’s of course, a big problem, but soluble.

Reubin Askew expresses concern over the high levels of unemployment in the United States automobile industry. Unlike Frazer, he is not in favour of imposing any form of import restrictions. Askew believes that such restrictions would have an adverse effect on the United States economy. Askew believes that the number of jobs created by import restrictions would be very small, whereas the costs of even temporary limits on imported cars would be very high. Askew cites the council of Economic Advisers’ estimate that every job gained by import restraint would add about $ 100,000 in costs to the consumer. Askew foresees a gradual recovery of the United States automobile industry as manufacturers become responsive to public demands for smaller, more fuel-efficient cars. He points to one study estimating that the imported share of the car market could be cut from 26 percent to 10 percent within a decade. Askew thinks that the Japanese are afraid the United States automobile industry will regain its previous market share. Therefore, the Japanese are reluctant to invest in car production in this country. In addition to government pressure on the Japanese to invest in the US, Askew points to government efforts to get the Japanese to open up their market. Although the Japanese have no tariffs on cars, they do impose a 6 to 8 percent tariff on car parts. The Japanese also require that imported cars be individually tested. The United States government is making some progress in persuading the Japanese to remove these trade restraints.

Make use of the helpful phrases:

· I am deeply honoured by the invitation extended to me to address you this evening.

· It’s not as simple as all that.

· Shall we go point by point?

· Considering all this....

· I know for a fact that....

· We can hardly ignore it.

· I think we’ll have to look into the matter again.

· I wish I could give you a reply now, but....

· Let’s take a closer look at it.

Martin Feldstein, Chairman of the Council of Economic Advisers: Concern over the international competitiveness of the USA is high. You attribute poor performance to two courses – failures of management and the support given to foreign businesses by their governments. Contributing to the view of declining competitiveness is the United States deficit in merchandise trade, especially the imbalance in trade with Japan.

Make use of the helpful phrases:

· I deeply appreciate the privilege of participating in a programme, which in so short a time has grown into an influential and strong panel.

· Most strikingly ….

· As a matter of fact....

· At first glance, ….

TV-viewer – 1 – When D. Frazer mentioned that United States companies continued to manufacture more profitable large cars too long, neglecting the small car market, you remark that, as United States consumers began to buy smaller cars, Japanese manufacturers met their needs. You are deeply dissatisfied that the Japanese got an exclusive hold on the small-car market. You totally agree with Frazer who fears that if some restraint is not put on the Japanese, the flood of imports will increase until the Japanese have exhausted their capacity to export cars.

Make use of the helpful phrases:

· This is really a blot on the landscape.

· All this suggests that, ….

· In short, ….

· Yet, for all evidence to the contrary, ….

TV-viewer – 2 – When Frazer expresses fear that the flood of imports will increase until the Japanese have exhausted their capacity to export cars, you support his view by saying that since consumers tend to stay with a car if they are satisfied with its performance, the United States automobile industry could suffer permanent damage.

Make use of the helpful phrases:

· It’s beyond doubt that ….

· Best, though, not to laugh too loud.

· After all, ….

· Wait till it is night before saying it has been a fine day. (French proverb)

TV-viewer – 3 as Frazer himself does not approve of trade restrictions that limit consumer choices. He asserts that the United States automobile industry needs the competition and discipline that the European and Japanese manufacturers provide. He refers to recent studies that suggest that between sixty and fifty per cent of the gains in productivity made in the West in the last half-century spring from better trained minds, from more research, and more systematic use of the economy’s brain power.

Make use of the helpful phrases:

· At the moment it seems little more than wishful thinking.

· As a matter of fact....

· Most strikingly, ….

· For the most part ….

TV-viewer – 4 agrees with Frazer that the time has come for the administration to get tough. Other industrialised countries have asked the Japanese to behave in a responsible manner, and the Japanese have responded. The speaker expresses concern over the international competitiveness of the United States. In his opinion United States business has steadily lost ground in the international marketplace. Contributing to the view of declining competitiveness is the United States deficit in merchandise trade, especially the imbalance in trade with Japan.

Make use of the helpful phrases:

· It makes sense(for somebody to do something).

· The approach has plenty of blots in its record.

· At the same time, however, ….

· To make a long story short, ….

TV-viewer – 5 approves of TV-view-5’s opinion and is also in favour of Askew’s idea that the Japanese are afraid the United States automobile industry will regain its previous market share. He thinks that as United States car companies become more competitive, foreign companies will find it harder to sell their cars in this country.

Make use of the helpful phrases:

· What I am saying is this:...

· In some ways, ….

· It doesn’t quite wash [8].

· Owing to the fact that ….

TV-viewer – 6 supports Askew’s idea that import restrictions would have an adverse effect on the United States economy. You felt sure that limiting the number of imported subcompact cars would force consumers to either buy larger, less efficient cars or postpone buying until smaller cars become available. The high cost to the consumer would increase inflation. The use of larger cars also would raise gasoline consumption.

Make use of the helpful phrases:

§ It goes without saying that ….

§ If you permit me ….

§ This casts the problem in a different light.

§ To crown it all, ….

§ Let’s not monkey with a buzz-saw [9]

TV-viewer – 7 believes, however, that foreign automobile manufacturers have a responsibility to invest here. He hopes that the government will continue to press the Japanese to make investments in this country.

Make use of the helpful phrases:

§ The situation reminds me of the proverb: “ You cannot climb the ladder of success with your hands in your pockets”.

§ In some ways, …

§ Still another saying implies that “You must spend money, if you wish to make money”.

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