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12.04.2008
Isn't Less Competition Good for the Survivor?
You'd think that if one of the Big 3 failed it' d mean more of a market share for the other 2 ... but - that's not true, they're actually all in it together. Why? Supply Shock - here's how.
1 comment:
Anonymous
said...
Let me state for the record that I am pro Big 3 bailout, obviously with conditions and strenuous oversight. The short term effects of bankruptcy would be catastrophic. With that being said, standard economic theory would argue that without the Big 3, demand for automobiles from foreign producers would increase. Therefore Toyota, Honda, and Nissan would have to increase production, and probably hire more employees at their plants in the southern states. Yes, they would be lower paid jobs than the Big 3 offered. But it is not like there still won't be long term demand for cars in America.
1 comment:
Let me state for the record that I am pro Big 3 bailout, obviously with conditions and strenuous oversight. The short term effects of bankruptcy would be catastrophic. With that being said, standard economic theory would argue that without the Big 3, demand for automobiles from foreign producers would increase. Therefore Toyota, Honda, and Nissan would have to increase production, and probably hire more employees at their plants in the southern states. Yes, they would be lower paid jobs than the Big 3 offered. But it is not like there still won't be long term demand for cars in America.
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