Economic Characteristics of Steel Industry Case Study

Economic Characteristics of Steel Industry - Case Study ExampleIncreasing population in many parts of the world especially in BRIC countries has also increased the requirement of steel based products such as new vehicles, appliances and building infrastructures. Government is the first force that plays two critical roles. First, local anesthetic and international sustainable and environmental laws are put into effect to protect the environment from adverse effects of steel producing plants. Second, when the steel firms require protection, it inflicts tariffs and trade regulations nonnegative tax breaks or subsidies however this can be minimized by providing Free Trade Agreements. Steel industry is highly influenced by technology and arouse prices. Technology has not only improved the quality of steel products but also the continuously growing fuel prices force the steel producing companies to figure reveal and implement new, innovative, and cost-effective technology and practices. During the past few years, the mergers and acquisitions have not only enhanced the growth of steel industry but also make the industry more cost competitive where competition is primarily based on prices. Recycling of steel and scrap material is another critical madcap force which plays an important part in the joint projects.