Integrative Case $2.3$ : Discussion Questions

Machine tools are the backbone of manufacturing. Given that the United States has maintained strong machine tool consumption, do the data support a widely held belief that US manufacturing is in $$decline$?$

It is rare to find an industry where the world$$s two largest economies have the two largest trade deficits. From a resource$-$based standpoint, what is unique about the machine tool industry relative to other industries such as the aircraft producing industry, the electronics industry, and the toy industry?

Why does China have the second$-$largest trade deficit in machine tools, although it is the largest machine tool producer in the world?

In comparison with leading machine exporters such as Japan, Germany, Italy, Switzerland, South Korea, Spain, and Austria, do they have anything unique that the US machine tool industry does not have?

Why does the report claim that the competitiveness of the machine tool industry is related to $$national self$-$determination$?$ If so$,$ given the current lack of competitiveness of the US machine tool industry, should the US government do something about it$?$ If so$,$ in what areas?

Integrative Case $2\mathrm{.}5$: Discussion Questions

What are the costs and benefits of FDI inflows for host countries such as Brazil and Mexico?

If you were an executive working for an emerging automaker from China or India, assuming your firm only has the ability to enter via FDI one Latin American country for the time being, which country would you recommend: Brazil or Mexico?

If you were a government official from an African country $($such as Morocco, Nigeria, or South Africa$)$ who has visited both Brazil and Mexico, which approach would you recommend to your own government interested in attracting FDI from global automakers: the Brazilian approach or the Mexican approach? Why?