First, I would recommend this Case Study Solution for students of politics. Recent events in China have added a new dimension to the “fire and fury” rhetoric of the current Administration. Do you know what else has added a new dimension to this rhetoric? Well, it was the fact that China doesn’t have a nuclear bomb.
So, are you starting to see why President Obama might be a little hot under the collar about nuclear proliferation in China? Well, the first thing you can do to improve the political climate in Washington is to remember that a country without a nuclear bomb is not inherently more dangerous than one with one. Be careful what you wish for.
Second, there’s no better time to think about the economic cycle. The United States and China are facing the first effects of a trade war, and the overall global economy is on a historic slide. As long as the United States has a massive trade deficit, it will face the risk of a long period of decline.
Of course, we must do what we can to increase U.S. exports, but it makes no sense to focus only on that, because there’s a far better way to do it, which is to promote higher levels of productivity, and raise U.S. living standards. We should be using this problem as an opportunity to help solve other problems, such as the rest of the world’s stagnant economies.
Third, many in the U.S. are still confused about the balance of power in the 21st century and the increasing impact of China’s economic system in the developing world. The third thing you can do is to read up on some really good materials on the issue by Professor Gary Clyde Hufbauer.
Hufbauer argues convincingly that the United States must focus its efforts more on combating economic development in other countries and less on promoting economic development in the United States. By focusing on what others are doing, rather than focusing on what we can do ourselves, we’re under-performing in our global competition.
Fourth, the fifth thing you can do with this Case Study Solution is to start thinking differently about the future of the United States. It’s time to stop thinking that America is in a uniquely privileged position.
If you want to get serious about getting to where you want to go, the first thing you need to do is read this Case Study Solution about inequality in the United States. If you can stop thinking about America as the Greatest Place on Earth, then there’s no reason for you to be concerned about how the rest of the world thinks of you.
Finally, this last bit of advice comes from an HBR Case Solutions that my colleague Matt Blunt wrote a few months ago. The authors of this Case Study Solution actually propose a novel and potentially very successful strategy for saving America’s financial system.
In short, the authors of this Case Study Solution propose a tax holiday to encourage multinational corporations to repatriate their overseas profits. This may sound like a small idea, but consider that there’s over $2 trillion ofprofits sitting in U.S. banks right now.
It’s a lot of money, but the bottom line is that if these multinationals agree to give back some of this money instead of exploiting it by repatriating their profits, they can send a huge cheer in this country, especially if it helps us regain our economic footing. in this period of profound change.