Reference no: EM132511392

Tesla Corporation (TSLA) stock has been in demand over the past year, tripling in value between July 2019 and January 2020, despite reporting losses in two of the last four quarters.

Autonomous vehicle technology is poised for introduction in urban and long-haul applications by companies such as Plus.ai. In an interview with Quartz, Bill Gates suggested that taxing robot output could help cover the shortfall in social services due to lost jobs and help pay for the increase in social services and support needed by displaced workers. An article in The Atlantic Magazine (A World Without Work) lays out the impact of automation on jobs and eventually on the default social contract in most capitalist societies. A review of a book with the same name provides additional insight.

Please research the topic of automation and its impact on an individual's ability to monetize their human capital. Given the idea that humans need to contribute to society to feel fulfilled and happy, please respond to the following:

a) What is your personal philosophy about firms using automation without regard to its impact on society?

b) What type of a political and economic system do you think might be best suited for a society where automation can provide the bulk of people's needs? What about Bill Gates' suggestion on taxing robot output? Keep in mind that robots do not consume (assuming they are not sentient in the way humans are) and that demand for products comes from people with the ability to pay.

c) As automation reduces the importance of labor cost as a basis for competitive advantage (and perhaps eliminates it), how do you think the global competitiveness landscape for manufacturing will change?

d) Finally, how may cultural (e.g. Hofstede's dimensions) and ethical factors (e.g. Utilitarian) moderate the rate of adoption of these types of technologies in different countries. Data at moralmachine.mit.edu may be helpful.