Discuss How The Decline In Consumer Purchasing Power Has Affected The Automobile Industry.

IntroductionMicro sparing factors violation heavily on purchasing mogul of car consumers . Economic cycles that consumer face produce high purchasing during the upturns of the economic and result in low purchasing in downturns periods same the current situation . As Chossudovsky (2008 observes consumer reduced purchasing power due to economic slump that is being witnessed results in more challenges to the gondola companies since they tend to overproduce during periods when economy is performing wholesome like in the late 1990s and at the tooth root of 2000 . During the economic decline as being witnessed right directly , consumer spending as well as corporate purchasing power reduced sharply resulting in a gigantic squeeze on car sales and the impact on reduced sales is bound to have enormous impact on the political machine assiduity .

This gives a brief summary of impact of reduced consumer purchasing power on automobile industryMicroeconomic factorsWhereas the government has a got a leading function in creation of a positive macroeconomic business standard pressure for the automobile industry Blaug (2007 ) explains that , the economies that has mostly succeeded in building as well as maintaining a health automobile industry are those polices in which the government has a minimal impediment at the microeconomic level allowing the market forced to operateMicroeconomic factors wait at relations through particular markets current scarcity and government regulations . In this case the particular market is automobile industry . Microeconomic theory puts into account the cumulative metre demanded by the consumers against the quantity supplied by the seller at a...If you trust to get a full essay, order it on our website: Ordercustompaper.com

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