When tariffs are levied against a specific country, that country might attempt to circumvent the tariff by rerouting products through a third country to avoid the higher taxes. Research in the aftermath of the 2018 U.S.-China trade war examined this phenomenon, finding that, while tariff circumvention through Vietnam did happen, it wasn’t as widespread as many had initially thought. That said, there still was an increase in tariff circumvention more broadly, and specifically via Chinese-owned firms in Vietnam. The findings suggest that if a country is considering implementing tariffs, a better approach might involve ownership-based duties or firm-specific sanctions instead of blanket tariffs.
When Luca de Meo became CEO of Renault Group in 2020, the 122-year-old French automaker faced financial challenges and the double technological disruption of the automotive industry: the shift to electric vehicles (EVs) and the rise of software-defined vehicles (SDVs). Within three years, he had turned the company around through his ambitious “Renaulution” strategy, which stabilized Renault’s finances, modernized its vehicle lineup, and began shifting the traditional automaker into a technology and mobility services company. This case highlights innovative elements of de Meo’s approach to leading change within an incumbent firm, including pulling mid-level managers out of their day jobs to help implement strategy and leveraging different communication tactics to align and inspire employees. de Meo’s unique leadership style—an unusual blend of visionary decisiveness and collaborative engagement—is explored, along with the challenges of building the will and skill of top management teams facing industry and technological disruption. Designed for MBA and executive education audiences, the case facilitates discussions on leading change amidst industry disruption, managing oneself as a leader, and navigating the dynamics of top management teams in times of transformation.
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