Submit your responses to the following cases in a Word document. Please number each of your answers. This is very important so that I understand which questions you are responding to. Please answer...

Case Study 3.1: The GM Bailout
1. General Motors (GM) was one of the reputed and largest companies of auto making in the year 2008. General Motors started suffering losses in the end of the year 2008 due to wrong vision prediction about the competitor’s strategy and market analysis. The Chief Executive Officer of General Motors Rick Wagoner was asked by the government of U.S. for inserting funds in order to free GM from the downfall and collapse. GM would not be able to survive if it would not bailed out due to incurring of more of the production costs for the production of SUVs model of cars. Moreover there is huge fund required for paying the laborers salary and pensions. The bailout decision of GM was one of the suitable option which will not incur any negative result.
From the viewpoint of utility there lies emphasis on the costs and the benefits obtained from the decision of bailout of GM. When analyzed and compared, GM have more benefits and advantage for bail out option as it created more jobs and saved economic from downturn through utilizing the human resources. On the other hand the disadvantage lies in the cost of the bail out money to pay.
However, implementing bail out strategy in GM, will lead to saving of tax payers for paying. The money can be used for any other sector and generate employment scope and tax revenue for government would be reduced. There will be social problem arising. So, GM bailout is suitable option.
From the point of view of justice, it is unethical for bailout strategy of GM as the other company also should get similar scope for bailout as per justice. This means that the law of treat everyone equally will not stand anymore in justice ground. . Hence, as per justice viewpoint it is impossible to bail out other companies based on the ground that GM is given bail out. A generalized and equal for all justice as per law will be applicable for all companies including GM. As per justice, GM bailout should not have been done.
According to the perspective of right, GM has the right to ask for some funds or financial help from any other party which have the potentiality to help GM overcome the problem. Bailout in this case is ethical.
From the perspective of caring, the bailout option of GM is ethical as it prevents from the bankruptcy of GM. Every other party related to GM is benefitted from the bailout option chosen. There are more jobs, society gets benefits, government tax in increased from salaried employees.
1. The decision of the government to take ownership of 61percent of GM is wise and correct. The decision of taking 61 percent of GM will enable the government to interfere and control on the different agendas and policies of GM. Due to the government interference and intervention there will be more central power decision made and less free market monopoly power. The government can regulate the market and...