Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Trumpcarrier

42 views

Published on

BUS356

Published in: Business
  • Be the first to comment

  • Be the first to like this

Trumpcarrier

  1. 1. TRUMP’S CARRIER DEAL Nicole Kim
  2. 2. Background • Carrier Corporation - furnace and air conditioner maker • Parent company – United Technology • In February, United Technologies announced the closure of a Carrier plant in Indianapolis and a factory in Huntington • Loss of 1,400 jobs in Indianapolis and 700 in Huntington • Wanted to relocate outside Monterrey, Mexico • Save $65m a year • Wages are cheaper there
  3. 3. Trump’s Message • Against globalization, trade deals, and outsourcing to Mexico • Promises to restore manufacturing, “put America first” • Threatens to impose stiff import tariff on goods made by American manufacturers that moved jobs offshore • Renegotiate NAFTA, free trade agreement between US, Mexico, and Canada
  4. 4. The Deal • Carrier will keep 1,100 jobs at the Indianapolis plant • Includes 300 positions never scheduled to leave • Still plans to send 1,300 jobs to Mexico and shutdown factory in Huntington • Indiana agreed to give company $7m in tax incentives over 10 years • Carrier will invest $16m in the state
  5. 5. Ethical Questions • Is it okay to give benefits to individual companies? • Did this create a bigger threat? • Bernie Sanders • Is it okay for businesses to make decisions that please politicians rather than customers and shareholders?
  6. 6. Sources • https://www.theguardian.com/us- news/2016/dec/03/donald-trump-carrier-factory-indiana- jobs-tax-breaks • http://money.cnn.com/2016/12/01/news/companies/donald -trump-carrier-jobs/ • http://www.nytimes.com/2016/12/01/business/economy/tr ump-carrier-pence-jobs.html?_r=0

×