Which of the Following Is the Key Driver of Global

question 33

Multiple Choice

Which of the following is the key driver of global consolidation in the motor industry?

• A) The desire to offer cars in every possible segment of the market
• B) A desire on the part of executives to run the biggest firm in the industry
• C) A need to achieve scale economies in the value chain to remain cost competitive
• D) A fear of being left behind by rivals who are globalising

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Definitions:

Opportunity Costs

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Natural Disaster

A sudden and extreme event caused by natural processes of the Earth that can result in significant damage and loss.

Inward Shift

A decrease in the potential output of a good or service, often represented by a shift to the left of its supply or demand curve.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, assuming efficient use of resources.