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U.S. AUTOMOBILE INDUSTRY

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Automakers came to Washington in late 2008 asking for Federal financial aid to avoid bankruptcy. Their reception was chilly, but aid was provided and bankruptcy occurred except for Ford. Assume you are the CEO of any one of the Big Three and discuss with your colleagues how you would turn your firm around. Make your arguments as a trained economist able to rationally analyze a vexing problem.

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Automakers came to Washington in late 2008 asking for Federal financial aid to avoid bankruptcy. Their reception was chilly, but aid was provided and bankruptcy occurred except for Ford. Assume you are the CEO of any one of the Big Three and discuss with your colleagues how you would turn your firm around. Make your arguments as a trained economist able to rationally analyze a vexing problem

I would turn the firm around by using a two pronged approach. First the revenues of the company should increase and second the costs of the auto giant must go down. Unless the company ...

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