ARTICLE – International Business (CL2 – Week 7)

Read the Closing Case: Tesla, Inc – Subsidizing Tesla Automobiles Globally on page 678 of the attached PDF.

Then WRITE AN ARTICLE covering the topics:

  1. Should companies like Tesla, Inc. (Tesla) rely on government subsidies in selling their cars because they are better for the environment than traditional cars based on the old technology of traditional combustion engines? 
  2. Basically, should the environmental issues be built into the competitiveness of the car pricing of electrical cars, or should supply and demand be the driver of the electrical cars prices? 
  3. Some governments are more likely to subsidize electric cars (and many other products) than other governments. Denmark took a stand to not subsidize (for now) electrical cars. Should such subsidies be up to each country or region in a country (e.g., California in the United States), or should there be a world standard enforced perhaps via the World Trade Organization, United Nations, or a similar organization? 
  4. Tesla made remarkable sales growth—from a startup (albeit with great financing) to $7 billion in sales with some $25 billion in assets. Does this mean that the Tesla business model was good and the market reacted positively, government subsidies were generous, and the market favored the car brand because of it, or a combination? 
  5. If all government subsidies to electric cars worldwide went away, would Tesla be as successful in five years as it is now? (Will Tesla even exist in 10 years?)

*** You MUST use the textbook, and 5 sources (ALL peer-reviewed) to support your findings. 

***** The paper must include an introduction and a clear thesis, multiple body paragraphs with subheaders, and a conclusion. 

APA 7 Format

At least:

– 5 pages

– 6 sources (textbook + 5 PEER REVIEWED sources)

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