The Economic Impact of the Automobile Industry

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t o The Economic Impact Of The Automobile Industry University of Phoenix XECO/212 – Economic Theory The Economic Impact Of The Automobile Industry Daniel Sach University of Phoenix XECO/212 – Economic Theory The Economic Impact Of The Automobile Industry Society as a whole has been changed by the advent of the automobile. The ability to quickly travel distances in a speedy manor has allowed for people to move further away from cities and logistics to become more efficient. The purchase of a vehicle has become a rather precarious adventured. Common points of contention when purchasing a vehicle could be price, terms, features or availability. Often consumers will argue to ensure that they receive the best possible deal in which they will benefit all areas equally. However, when a consumer strives for a lower price, they must be willing to make compromise in other areas such as features and availability. If a consumer desires a vehicle in a specific color, they maybe have to pay more because it may not be available where they are located and must be transported. The increased cost might deter the buyer from what they are looking for and the they may compromise and purchase something different. Automobile companies strive to have available what the consumer is after but often outside circumstance may dictate and or affect a dealers stock. Car manufactures, depend on a number of industries to support the build of a vehicle from metal to cotton textile to cattle agriculture. Another major contributing factor that affects all aspect of vehicle manufacturing is the price of oil barrels. Oil prices directly affect gas prices and production costs causing an increases in prices to transport and process materials. While a lack of stock might deter some buyers, others often make compromises to have what they want. If a consumer is faced with the

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