Economics in the Automotive Industry

Economics in the Automotive Industry

Introduction

We can see nowadays how each country suffers and struggles for economic dilemma . Even the most industrialized countries namely the United States of America and European countries are not exempted for this economic dilemma and still in search for strategies how to cope with this Different industries around the world are so-called economic failure and some of these industries are declaring bankruptcy and now closed because they are unable to cope up with the low demands in the market . The supply and demand in the market

depends on the economy of each country . The first one to be affected with the economic stability or instability is the consumers , then the industries When there is economic stability , the flow of the supply and demand in the market is very high because the consumers can be able to afford in purchasing products because of the affordable and reasonable prices stated but when there is economic instability and fluctuations , of course the industries will increase their products ' prices for them to cope with their losses and accumulate profits . And because of the said dilemma , many consumers will tend not to buy such products because it is beyond their capacity . Because of these , the selling of the industries has been affected because their valued consumers are not being able cope with the high-selling-prices and prefer not to purchase it anymore . But in spite of this dilemma , there are still industries that are continuing to press on , in the middle of this economic crisis

One of the most affected industries in this economic crisis is the automotive industry . Though currently , automobiles are one of the needs of the people because of the fast-changing world and modernization but at the same time , momentarily , consumers cannot prioritize it since they are also oblige to buy the other basic necessities which are food shelter , clothing and education for their children which is the most important of all in to live

The purpose of this study is to (1 ) scrutinize the reasons of how a current or past event in the auto industry has caused shifts with the price elasticity of supply and demand (2 ) Know the negative or positive externalities the auto industry produces (3 ) Realize how wage inequality is measured and if it is present in the auto industry (4 ) Be aware of the monetary and /or fiscal policies that have affected the auto industry (5 ) Comprehend how economy affects the success of the automotive industry and (6 ) Distinguish the economic influences that can affect the industry in a negative way Current or past event in the auto industry

There are many factors which caused shifts with the price elasticity of supply and demand related to auto industry . One of these caused is the crude oil and gasoline prices which have been an issue nowadays . They affect different sectors most especially in the automobile industry When there is an increase of price in gasoline , the consumers tend not to buy...