(Case Collection) Softwodd Lumber - Case #1-2

(Case Collection) Softwodd Lumber - Case #1-2 - [q I f”...

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Unformatted text preview: [q I f” .is.’ ’ =-....a' if ykf/WQOA .l I Based on the case “The Canada — U.S. Softwood Laniij Trade Dispute”, present two interventions that the Canadian government could introduce to assist the Canadian softwood lumber industry. For each of the interventions, which One Quality Determinant will have the most impact on the intervention? 1. GOAL: To assist the Canadian softwood lumber industry to corgarfct the Iggy US duties/ggR _ ' ; h .. . i 2. INTERVENTION: Government suhsjflizes Canadian lumber producers for diversification and international marketing. (Jurkowski, 508) flsv%i5b®r J 3. MODEL DIMENSIONS: DIRECT/INDIRECT DIMENSION: ‘ The intervention is indirect because at A there is the government to act on intervention to assist Canadian lumber producers. At B the Canadian lumber producers accepting the funds required from the government are able to improve their operations by buying new technology, and diversify their products by adding value to the products. (,Jurkowski, 510). At C, the following occurs: ( i ) The QQAL: The goal is satisfied as Canadian lumber producers receiving subsidy from government are able to stay in operation. Their costs are reduced while efficiencies are increased because of improved operations; their products, which are added more it alue and diversified become more competitive in the market. (ii )The intended result: The intended result is achieved as Canadian lumber producers receiving subsidy from government can export their lumber. They counteract the high duties after the costs are reduced. and enter the new international markets with more value—added, diversified products. (iii) The new state of equilibrium: The new state of equilibrium is the Canadian lumber producers become more efficient and expend new intemational markets. ' COERCIVE/VOLUNTARY DIMENSION: The intervention is voluntary because the Canadian lumber producers accept the fund at their own will. Ifthey feel it can help them to survive under the high duties. they may accept the fund to improve their operation by buying new equipment and technology. ' Otherwise, they do not have to accept the assistance and will not be penalized for not doing so. ‘2 “T STRATEGIC/REACTIVE DIMENSION: The intervention is purely reactive. The government accomplishes its goal of assisting the Canadian lumber producers without regarding to the root causes of the hefty US duties. The government simply provides fund to support domestic lumber producers to survive under the high duties, rather than figure out an enduring solution with US that works, which can bring a stable lumber market in both countries. . UALITY DE'I‘E ,W‘the degree to which the intended or stated goals are satisfied, when all effects and interaction are substantially complete, or have reached a state of equilibrium.” (Jurkowski, 310) Under the indirect, voluntary intervention from the government, the accuracy will be less. It is hard to control the improvement processes accomplished by t e Canadian lumber producers receiving assistance from the government. Precisi n: “the degree to which the effect of the intervention is limited to only the intended goal(s).” (J urkowski, 310) Under the indirect, voluntary intervention from the government, the precision will be le . There may exist many intermediate steps or problems in order to achieve the intended goal of helping the Canadian lumber producers facing the high US duties to survive. ‘ ' Efficiency: “the difference or ratio between the resources .or utilities crerated (benefits) and those expended (costs).” (.lurkowski, 310) Under the indirect, voluntary intervention from the government the efficiency will be less. it is very expensive to buy new MW _ WWWM3M~¥ , “A _~___,___V‘ /"\.. W,‘ equipment. techno]ogygwandfltrnainfiworlgersgsy ile there exrsts rtle-for s__c§essful a, - ............ , -- kw“ ,_._ _ . _/—"H\_“/ x“... —~~ -- M x. ........ m/ m/ efforts and resources may be wasted on inappropriate improvement processes. Time Delay: "the period of time between the implementation of an intervention and the ucconipl‘isluncnt of the desired goals.“ (Jurkowski, 3i 1) Under th * indirect, ‘t'oluntm‘y intervention from the government the time delay will be mo e. This determinant will have the most impact on the interventi011.3;hg‘rnprovement a long—tewess. Many steps are necessary for the Canadian lumber producer's: such as‘B'ti’yTrig’new equipment, training workers. upgrading sawmill facilities. which will take a long time until getting profits. Env~ Sector; “who or which sector has government targeted tor change and what will be its response (lurkowski, lecture 7 notes). Under the indirect] voluntary intervention from the government, the efficiency will be more deleterious. Busmesses will endeavor to resolve the effects, impacts and influences consequences and amifications that government did not remedy. High costs and efforts will be imposed on the Canadian lumber producers to improve heir operations. ~ also as «waste ' mate-ts - 5, the intervention will or will not be effective or successful In conclusion: the intervention will be less effective, when it is less accurate precision, efficiency and more time delay, deleterious on the private sector’s environment. This is a long-term program and there is high uncertainty of survive. lnte rvention 2. I :iSGOAL: Toassist the Canadian softwood lumber industry to counteractthe Rift? a duties. ‘ I N v' 2. lNTERVENT ION: Government imposes Canadian Wood Export Program to increase wood exports in countries like China, Taiwan. Korea and India. (lurkowski, - . ) 3. MODEL DIMENSIONS: DIRECT/INDIRECT DIMENSION: The intervention is direct because at A there is the government to act on intervention to increase Canada’s wood exports in international markets. At B, the following occurs: ( i ) The GQAL: The goal is satisfied as Canadian lumber producers entering international markets will survive, while relying less on the US market and do not need to ay the high US duties P 11 ) he intende result: The intended result is achieved as Canadian lumber roducers exporting lumber to Asian countries rather than US avoid paying 1g uties, and therefore can stay in operatio/n; (iii) The Wit-fibrium: The new state of equilibrium is the W producers expend new international. markets and stay in operation. W (“OPRCIVF/VO fl ON: "The intervention is coercive because the government is imposing policy by expending Canada’s wood exports in international markets. The Canadian lumber producers will have to follow the program without any option. EGIC/ The intervention is purely reactive. The government accomplishes its goal of assisting the Canadian lumber producers without regarding to the root causes of the hefty US duties. The govemment simply impose program to help domestic lumber producers to export their lumber to international markets. rather than figure out an enduring solution with l lS that works. which can bring a stable lumber market in both corinrtmnEsT'ggfljrhg . WWW . era-HT? DETE' "the degree to which the intended or stated goals are satisfied. when all effects and interaction are substantially complete. or have reached a state of equilibrium.” (.lurkowski, 310) Under the direct, coercive intervention from the government, the accuracy will be more. Canadian lumber producers are encouraged to export their lumber 0 Asian countries rather than US: therefore. they do not have to pay the high US duties. When tariffs are reduced. they can get more profits and stay in operation at the current production level. @“the degree to which the effect of the intervention is limited to only the intended g0al(s)." (Jurkowski, 3 l0) Under the direct. coercive intervention from the government, the precision will be more. The government provides fund only to help lumber producers export t eir lumber to Asian countries. @: “the difference or ratio between the resources or utilities crerated (benefits) ose expended (costs).” (Jurkowski, 310) Under the direct, coercive intervention from the government; the efficienc will be ore ith relatively low cost, overnment can help lumber pro rs to export to the Asian countries, payin low tariffs and get W @ “the period of time between the implementation of an intervention and the accomplishment of the desired goals.” (Jurkowski, 311) Under the direct, coercive intervention from the government, the time delay will be less. While being able to export W , . to Asian countries, lumber producers can get high profits immediately at low tariffs. ""L‘v1ronme’nta‘ ffe o rivate Sector “who or which sector has government targeted for change an what will be its response (Jurkowski, lecture 7 notes). Under the direct, Coercive intervention from the government, the efficiency will be 165 delete 'ous. v 0 Canadian lumber producers will get high benefits om the help of government. W 5. The intervention will or will not be effective or successful In conclusion: the intervention will be effective when it is more accurate, precision, efficiency and less time delay, deleterious on the private sector‘s environment. The Canadian lumber producers can stay in operations while exporting their lumber to Asian Countries with the help of government. ‘1‘ w— ... - —' ‘ ‘ mum—a via—ag=m* - £14932“; mfi__Cfligmmflufi4MflmeLmMgfiflLJ2mh_mfiflLgmpm$fi V_efiffictipgamdfmmggeamfigw _._._._...__.._imagmodzmgcwuwtoLjflzflggwflfifixwifi _g&_._lfii_gc.€wfisg flmJJMQLLLEL_1g.CMS~é)fl_M/lfifhvfléfijfl__Céméiiém_ .Mmm4aaéusafilnas .. 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This note was uploaded on 06/02/2011 for the course ADMS 1010 taught by Professor Jurkowski during the Spring '09 term at York University.

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(Case Collection) Softwodd Lumber - Case #1-2 - [q I f”...

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