Essays on Micro and Macroeconomic Influences on the Automobiles Industry Case Study

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The paper 'Micro and Macroeconomic Influences on the Automobiles Industry' is a perfect example of a Macro and Microeconomics Case Study. The case examines the influence of macro and microeconomic factors on the automobile industry of different players across the globe. The U. S. automobiles market recorded a 12.8% increase in its sales in 2012 as compared to the sales realized in 2011. During that year, the U. S. automobiles market sold 1.19 million automobiles. The resulting annualized rate was 14.94 million vehicles. It was evident that the market recorded the highest sales in the year since March 2008, prior to the onset of the global economic recession.

The increased sales in the market emanated from the rise in the demand for passenger cars an indicator that the economy was recovering from the economic slump. Three industry players, Chrysler Group LLC, Honda Motor Co. , and Toyota Motor Corp. recorded the increase in annual sales realized in 2012. The 2011 earthquake in Japan had influenced negatively the production of automobiles by Toyota and Honda. Consequently, Asian automobile manufacturers were recovering from the impact of the earthquake that had hit Japan. So far, the case presents two macroeconomic factors that affected the automobiles industry thereby resulting in a decline in the sales realized and the number of automobiles assembled by the players.

The economic 2008/2009 global economic recession suffices to be the first macroeconomic factor that reduced the demand for automobiles because of its adverse impact on the spending power of customers. The case also identifies the other factor, the 2011 earthquake in Japan that had affected the delivery of parts for vehicle assembly thereby reducing the number of assembled automobiles in the year.

The case also attributes the massive sales of automobiles in 2012 to the increasing consumer demand for vehicles in the year. The demand emanated from the need to replace aging vehicles by customers. The case also identifies two other factors that contributed to the increase in automobile production in 2012. The factors, adequate availability of affordable labor, and favorable foreign exchange rates contributed to the rise in the performance of the automobiles industry in 2012.

Works Cited

Canis, Bill. Motor Vehicle Supply Chain: Effects of the Japanese Earthquake and Tsunami. Diane Publishing, 2011.

Haugh, David, Annabelle Mourougane, and Olivier Chatal. "The automobile industry in and beyond the crisis." (2010).

Office of Industries. Passenger Vehicles: Industry & Trade Summary. United States International Trade Commission. (2013).

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