Economics Article Analysis: Ford, GM Team Up on New Transmission

... I.B. Economics S.L.II ... "Ford, GM Team Up on New Transmission." As the two largest car producers in the world, General Motors and Ford are the leading manufacturers in a market section functioning as an oligopoly. Since there's a limited number of successful car manufacturers, the actions of one will have measurable impact on competitors. Instead of competing against each other, the joining of these companies to develop a new six-speed automatic transmission will have considerable influence on the automobile economy. Both powerful and thriving producers, this team will be one that will rival other producers of the same goods. Working together on this development will give the advantage of two "minds" put together, and so provide a large lead. Rational thinking consumers and investors will invest their money into the venture, and are very likely to gain from this. The stock market has already shown an increase in

want to read more? →