After the Substantial Increases in Productivity Seen at Their Oshawa

question 147

Essay

After the substantial increases in productivity seen at their Oshawa plant, Delta Automobiles implemented similar upgrades at their Tampa plant. But the productivity at Tampa did not show any improvement. So the team that designed the upgrades was asked to prepare a troubleshooting report. What is the purpose of this troubleshooting report? Would a failure analysis report help in a similar situation and how? Which category of reports do both these reports belong to?

Understand the implications of economies of scale on industry concentration and competition.

Identify factors contributing to industry being oligopolistic.

Understand the use of the Herfindahl-Hirschman Index (HHI) by the government in merger regulation.

Calculate the Herfindahl-Hirschman Index (HHI) and analyze market concentration.

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Definitions:

Quota

Designates the maximum quantity of a product that may be brought into a country during a specified time period.

Imported Goods

Products or goods brought into one country from another, subject to the importing nation's customs and regulations.

Direct Investment

When a firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.

Complete Control

The authority or power to fully manage or govern all aspects of an entity, situation, or mechanism without any external interference.