In the last few decades the car manufacturing sector has found it difficult to compete with foreign car imports. High labor cost
s is one of the main reasons economist site as the lack of competitiveness for the car manufacturing industry. If there was modest inflation, how could it possibly help the car manufacturing industry in the United States compete with foreign car manufacturers? a. The consumers of the cars have increased purchasing power.
b. Business loans would cost less for the U.S. car manufacturers.
c. It could allow real wages to downwardly adjust more easily.
Answer: c. It could allow real wages to downwardly adjust more easily.
Explanation:
When there is modest inflation, companies in the car manufacturing industry can simply decide not to increase nominal wages. This would lead to a fall in real wages as inflation would ensure that the nominal wages are less than they were worth before.
This decrease in real wages will allow the companies in the industry to reduce labor costs in real terms and become more competitive with the foreign manufacturers.
The Communication Privacy Management Theory studies the ways that people think about and make decisions surrounding how to reveal or hide private information.
Lease the car as it will not see many miles and is used in a specific time frame. should he need it longer he can buy out the lease at the end to owm the car.
