According to an article on reuters.com, Fiat Chrysler Automobiles, the firm that sells Dodge and Chrysler cars and trucks in the United States, decided to invest $1 billion to modernize two of its U.S. production plants. The article described the possible effect of President Trump’s trade policies on Fiat Chrysler’s decision.
a. What trade policies was the article referring to? How would those policies affect Fiat Chrysler’s decision about whether to expand production in the United States?
b. The article also implied that Fiat Chrysler’s decision might have been affected by the possibility that the Trump administration will relax environmental regulations, such as a rule requiring companies to increase their cars’ miles per gallon, and attempt to reduce the taxes corporations pay on their profits. Why would these two factors affect Fiat Chrysler’s decision?
c. Which groups are likely to gain, and which groups are likely to lose as a result of Fiat Chrysler’s decision to produce more cars in U.S. plants rather than in overseas plants?