W3a1 – case study 3.1: the gm bailout


Be sure to read Chapter 3 – The Business System: Government, Markets, and International Trade. Case Study 3.1: The GM Bailout on pages 156 – 159 offer an abbreviated version of the U.S. government response to provide relief to a major domestic automotive  manufacturer (General Motors) in an effort to avoid the very real potential for impending bankruptcy. There are many business issues associated with this case, but our focus will be on the theories, concepts, and topics related to business ethics.

Respond to the following questions:

1. In your view, should the GM bailout have been done? Explain why or why not using the ideas of the various thinkers discussed in this chapter (and, if relevant, previous chapters). Was the bailout ethical in terms of utilitarianism, justice, rights, and caring? Explain and support your response.

2. In your judgement, was it ‘good or bad’ for the government to take ownership of 61 percent of GM? Explain why or why not in terms of the theories of Locke, Smith, and Marx.

This assignment is must be submitted by Sunday, February 21st at 11:59 PM.

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