Read The Worddoc First And Answer Those Following Question
Read the word.doc first and answer those following question what factors contributed to Harley-Davidson's decision to shift production overseas? How could the increasing global trade tensions impact the supply chains of companies? Do you support the decision of Harley-Davidson to shift production overseas? Explain your point of view. President Donald Trump tweeted that Harley-Davidson was "using EU tariffs as 'an excuse' to shift production overseas" and that its decision to shift production overseas would be the "beginning of the end." Do you support his point of view? Defend your position. Paper Requirement ■ 1.5 to 2 pages ■ Must have a cover page showing the title of the paper, due date, authors of the paper and class# ■ Margins 1", top, bottom, right and left ■ Acceptable fonts: Arial or Times New Roman ■ Font color: black-Using other colors on the cover page is allowed ■ Font height: 12 pts. ■ Line spacing: Double ■ Your submission must meet the formatting requirements outlined in the syllabus and must have bullet points separately showing each question and your response
Paper For Above instruction
Read The Worddoc First And Answer Those Following Question
Read The Worddoc First And Answer Those Following Question
The decision of Harley-Davidson to shift production overseas was primarily driven by a combination of economic, strategic, and geopolitical factors. One of the significant economic reasons was the desire to reduce manufacturing costs. Overseas production, particularly in countries with lower labor wages such as Mexico and parts of Asia, allows Harley-Davidson to lower the cost of goods sold, thereby increasing profit margins and remaining competitive in a saturated and competitive global motorcycle market (Harley-Davidson, 2018). Additionally, the rising costs of operations in the United States, including tariffs, labor, and regulatory compliance, pressured the company to consider offshoring.
Geopolitical factors also played a role. U.S.-China trade tensions, tariffs, and Brexit created an uncertain environment for manufacturing and international trade. Harley-Davidson aimed to mitigate risks by diversifying and relocating production where trade barriers were less restrictive or could be negotiated. The recent tariffs imposed on imports into the U.S. and retaliatory tariffs by the EU increased costs for American-made Harley-Davidson motorcycles exported abroad, further incentivizing offshoring to avoid tariffs and maintain market competitiveness (Homburg et al., 2019).
Regarding global trade tensions, increasing protectionist policies and tariffs can significantly disrupt the supply chains of many companies. These tensions introduce tariffs, quotas, and regulatory barriers that increase the cost and complexity of importing and exporting goods. Companies relying on global supply chains might face higher costs for raw materials and components, delays in delivery, and uncertain market access, which can negatively impact profitability and strategic planning (Baldwin & Evenett, 2020). Disruptions could force companies to reconfigure their supply chains, seek diversified or local sourcing options, and invest in supply chain resilience to counteract geopolitical risks, all of which could lead to increased operational costs and reduced flexibility.
My perspective on Harley-Davidson's decision to shift production overseas is that it is a strategic move motivated by economic and competitive necessity rather than a disregard for American manufacturing. While some argue that offshoring results in job losses domestically, it also allows Harley-Davidson to stay afloat in a global marketplace that is increasingly competitive and where cost margins are thin. Offshoring can help sustain the company's long-term viability and preserve its brand by enabling pricing competitiveness and market expansion (Meyer & Huczewicz, 2018). Therefore, I support Harley-Davidson's decision, provided they also invest in maintaining innovation and quality standards to uphold their brand reputation.
President Donald Trump's assertion that Harley-Davidson was "using EU tariffs as 'an excuse' to shift production overseas" and that this decision signals "the beginning of the end" reflects a political perspective emphasizing the importance of American manufacturing. From a business standpoint, Harley-Davidson's decision appears primarily driven by economic considerations rather than political motives—aiming to mitigate trade barriers and lower costs. While tariffs do influence these decisions, they are part of broader strategic responses to the global economic environment. Dismissing Harley-Davidson's choice solely as an excuse overlooks the complex interplay of market forces and regulatory pressures. Therefore, I do not fully support Trump's negative characterization; rather, I see Harley-Davidson's decision as a pragmatic adaptation to current global trade realities.
References
Baldwin, R., & Evenett, S. J. (2020). *COVID-19 and Trade Policy: Why It's Time to Rethink the Global Supply Chain.* CEPR Press.
Harley-Davidson. (2018). *Annual Report 2018.* Harley-Davidson Inc.
Homburg, C., Kuester, S., & Krohmer, H. (2019). *Marketing Management: A Contemporary Perspective.* McGraw-Hill Education.
Meyer, J. P., & Huczewicz, J. (2018). *Global Strategies of American Companies.* Journal of Business Strategy, 39(4), 50-57.