Revving up for Relief: Harley-Davidson at the ITC
Initial Publication Date: November 13, 2009
Summary
Published in 1986, this Kennedy School case tells the story of Harley-Davidson's application to the ITC for temporary relief from high levels of imported Japanese motorcycles. The case lays out, in considerable detail, Harley's justification for protection and the Japanese manufacturers' counterarguments. The case is presented in two parts, the first focusing on the extent of the "injury" an the second on the nature of the relief Harley requested.
CollapseLearning Goals
This case can be used to reinforce ideas of comparative advantage, to understand the idea of "injury" from trade, to apply the analysis of a tariff, to identify the gainers and losers from trade policy and discuss the political economy of policy formation.
Context for Use
This could be used in courses in international trade and political economy.
Description and Teaching Materials
The case, teaching note, and a sequel, can be purchased at KSG Harley-Davidson Case.
Teaching Notes and Tips
Velenchik Teaching Note for Harley Davidson Case (Microsoft Word 51kB Jun1 09)
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Assessment
During class discussion you should be able to quickly see which students have understood the meaning of comparative advantage by the quality of the answers to the questions. The case can also be used as the basis of writing assignments, an example of which can be found at:
Velenchik Paper Assignment (Microsoft Word 115kB Jun1 09)
Velenchik Paper Assignment (Microsoft Word 115kB Jun1 09)
References and Resources
The Teaching Note that can be purchased with the case is excellent.