5. Case: The US Steel Industry in 2004: Still in Need of Protection?

Question (a)
The question asks for a justification that whether the US steel industry requires protection
or it has to operate in a free trade environment.
The answer discussed some facts related to the steel industry in US. However, the answer
fails to provide a concrete stand on whether the steel industry need protection or it should
operate in a free trade environment. The crux of answer this question lies in justifying a
particular stand and critically analyzing the other one.
Question (b)
The question intends to analyze the impact of government intervention on the US steel
industry.
The answer discussed various positive measure taken by the US government in terms of
eliminating inefficient excess capacity, eliminating the market and trade distorting
practices, trade relation and proportion of exports, anti dumping measures, taken by the
government to make the biased free trade environment, trade war among the European
Union, increases in the prices of steel and have negative consequences on employment
and output.etc.