International Political Economics

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Election year is always a difficult time for those who expect politicians and pundits to remain rational. The political maneuvering started a while ago and clean energy became another point of contention between various political factions. “ONE YEAR AGO TODAY, THE SOLAR MANUFACTURER SOLYNDRA FILED FOR BANKRUPTCY AFTER RECEIVING A $527 MILLION LOAN GUARANTEE. THE BANKRUPTCY SET OFF A POLITICAL FIRESTORM IN CONGRESS, AND EVENTUALLY WORKED ITS WAY INTO THE PRESIDENTIAL CAMPAIGN. TODAY, THE REPUBLICAN PARTY IS USING SOLYNDRA AS A KEY TOOL IN ITS CAMPAIGN AGAINST OBAMA — SMEARING THE ENTIRE CLEAN ENERGY INDUSTRY IN THE PROCESS.” (Lacey, 2012) Campaigns of this magnitude have a significant impact on the international political scene, and economic decisions. Considering that currently China has a very large and inexpensive manufacturing capabilities, as comparing to those in the U.S.; it should not come as a surprise that they can outperform Western (U.S.) manufactures. “PRICES OF SOLAR PANELS HAVE PLUMMETED, CAUSING A SUPPLY GLUT AND SLICING COMPANY REVENUES. SOLYNDRA'S COLLAPSE MARKED THE THIRD TIME IN AS MANY WEEKS THAT A SOLAR COMPANY DECLARED BANKRUPTCY. EVERGREEN SOLAR INC. OF MASSACHUSETTS AND SPECTRAWATT OF NEW YORK ALSO FILED FOR PROTECTION. (Mulkern, 2011). Clean energy is not only appealing to the United States, “THE CHINESE GOVERNMENT IS [also] INVESTING IN SOLAR PRODUCTION, WHICH HAS LED TO A BURST IN PRODUCTION THAT HAS BOOSTED SUPPLIES AND FORCED DOWN PRODUCT PRICES WORLDWIDE. THE PRICE OF PANELS HAS TUMBLED MORE THAN 40 PERCENT IN A YEAR, […]. (Mulkern, 2011). It is not unusual in the cases, where two separate Governments support identical national industries, to asses that other side engages in the unfair trade practices. Since those disputes are frequently politically charged, neither side is willing to conceded any points. In this case “CHINA'S…...

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