Description: Ford Motor Company has changed gears on its plans to build a $1.6 billion plant in Mexico. In the face of incoming U.S. President Donald Trump’s threat to invoke a border tax, the auto builder decided to rethink its position. Canadians may be wondering about what all this means for the automakers’ plans to invest in assets in our country.
Date: January 3, 2017; updated January 4, 2017
1) What might be some of the impacts of these proposed border taxes on companies shifting jobs out of the United States? Will other companies follow the Ford gear change?
2) If you were in charge of implementing such a tax, how would you structure it?
3) As an accountant, how would you provide advice on capital budgeting decisions in the face of a possible border tax?