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If General Auto and Crystal Auto have returns that are perfectly positively correlated, then adding Crystal Auto to a portfolio that already contains General Auto will
Centralization
The concentration of control or decision-making authority in a centralized body or location, away from local or individual entities.
Decentralization
The process of distributing or dispersing functions, powers, people or things away from a central location or authority.
Trade Barriers
Government-imposed restrictions on international trade, such as tariffs and quotas, that affect the free flow of goods between countries.
Inefficient Industry
A sector of the economy where resources are not optimally used, often leading to wasted efforts, higher production costs, and reduced competitiveness.
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