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Wednesday, March 20, 2019

Struggles in the United States Steel Industry :: Business Essays

Struggles in the coupled States Steel Industry In the past decade the join States has encountered some(prenominal) challenges to its firebrand industry. The steel industry has changed tremendously since the early 1900s when the United States dominated the steel grocery store. According to figures on a international Steel Business website, in 1900, the United States produced 37% of the worlds steel. Now Asia produces 40% of the worlds steel and China is the world leader in steel production. The United States decline in steel production has forced the United States to issue 24% more steel in 1999 than 1998. (GSB 1) There are many argues why United States steel industries are try. One main reason is the young increase of steel production in poorer foreign countries. These countries defy weak economies and are able-bodied to produce steel cheaper than the United States by paying smaller wages and using cheaper, less safe slipway of producing steel. (GSB 1) An arti cle headed by Global Steel Business writes these economic stricken countries pay an average of four dollars less an hour than the United States. (GSB 2) It as well writes, the methods used by such countries are abnormally dangerous. (GSB 2) These changes accept increase the United States imports from 98-99 from Japan 147.8%, S let onh Korea 93.3% and Russia 53.3%. Another reason the United States is assay is due to steel discard. Dumping is the process when a company takes blow up in pricing items below their production cost to drive competitors out of an import market (SD1). Many countries, including Japan, have been accused of steel dumping by the United States. Countries such as Japan are able to do legally dump steel on the United States do to their foreign government subsidies (SD1). According to an internet site dealing with steel dumping, The U.S. Commerce Department ruled that Japan sold steel as much as 60% below fair market prise (SD1). The United States st eel companies cant compete with these foreign steel prices and are evermore undersold. A third reason United States Steel companies are struggling is the problem within the companys management. Unlike a century ago when wide-ranging companies ruled the market, now most steel companies are smaller. A recent article in The Economist magazine explains that these small companies often dont have the managerial skills to compete in the highly complicated steel market (The Economist 83).

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