As we discuss organizational change and the need to stay competitive in a global market, it might be of value to observe what is happening related to tariffs and trade. Realistically, governmental policies affect the competitiveness of companies. In a competitive global market, low costs is a distinctive competitive advantage. Companies found that purchasing goods from China gave them a cost advantage. However, the tariffs on Chinese goods was intended to discourage imports from China and encourage manufacturing in the U.S.

A recent article in The Wall Street Journal indicated that the trade war against China did not achieve the central objective of reversing a U.S. decline in manufacturing. What happened? Why didn’t manufacturing return to the U.S.?

According to the article in The Wall Street Journal, “U.S. importers shifted to cheaper sources of goods from Vietnam, Mexico and other countries (Zumbrun & Davis, 2020, p. A1. A2).

What has been your experience in your careers? Have you been affected by low cost imports? What about services? Have you been affected by outsourcing of services to low cost overseas operations?

Please respond with at least 175 words


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