Develop a paper in which you select an industry that interests you, describe that industry, and explain how the government might impact the industry.
A paper template is provided below for this assignment.
eview your chapter readings and use the resources provided to develop a 2–3 page paper on Economic Principles – Microeconomics in which you:
Choose an industry that interests you. (Remember: An industry is not a company. It is a group of companies doing the same thing. Ford is a company. Automobile manufacturing is an industry.)
Do research on your industry. In a few short paragraphs, describe your selected industry:
Be sure to write in your own words.
Identify some of the major companies in this industry.
Identify the goods, and/or services this industry produces.
Add anything else about the industry that you think is interesting.
Keep track of your sources and list them at the bottom of your paper according to SWS.
Describe a microeconomic variable for your industry. Microeconomic variables include prices, sales, production, advertising, investment, and so on.
Include a graph, chart, or table showing this microeconomic variable over time.
You do not need to create this graph, chart, or table. Find one that has already been created and paste it into your paper. For example, if your industry is U.S. automobile manufacturing, Google, "U.S. automobile manufacturing over time." Select the "images" option. Choose one of the graphs, charts, or tables. Then copy and paste it into your paper.
Include a reference to the source of the graph, chart, or table. Microeconomic relationships and market outcomes are covered in Weeks 2–4.
Describe one way the government might impact this industry. Examples might include price controls, regulations, taxes, or any other way you can think of.
Government intervention through price controls, regulations, taxes, and antitrust enforcement were covered in Weeks 2 and 4.
The Impact of Government on the Automobile Manufacturing Industry
Introduction
The automobile manufacturing industry is a crucial sector of the global economy, responsible for the production of vehicles that have become an integral part of modern society. This industry encompasses a wide range of companies, from large multinational corporations like Ford and Toyota to smaller local manufacturers. In this paper, we will explore the automobile manufacturing industry, highlight some major players, discuss the goods and services produced, and examine the impact of government intervention on this industry.
Description of the Automobile Manufacturing Industry
The automobile manufacturing industry is involved in the production of automobiles, including cars, trucks, and other motor vehicles. These vehicles are used for personal transportation, commercial purposes, and various other applications. The industry comprises companies that design, develop, assemble, and sell automobiles to consumers worldwide.
Some major players in the automobile manufacturing industry include General Motors, Toyota, Volkswagen, Ford, Honda, BMW, and Tesla. These companies have a significant market share and compete with each other to innovate and improve their products. They invest heavily in research and development to enhance safety features, fuel efficiency, and overall performance.
The goods and services produced by the automobile manufacturing industry go beyond just vehicles. They encompass a vast ecosystem of associated products and services. These include automotive parts and components, maintenance and repair services, financing and insurance options, and even software development for autonomous driving technology.
Microeconomic Variable: Vehicle Sales
One crucial microeconomic variable in the automobile manufacturing industry is vehicle sales. The number of vehicles sold directly affects the revenue and profitability of companies in this sector. It is an indicator of consumer demand for automobiles and reflects the overall economic conditions of a country or region.
Vehicle Sales Over Time
The graph above shows the trend of vehicle sales over time in the automobile manufacturing industry. As we can see, there are fluctuations in sales due to various factors such as economic recessions, changes in consumer preferences, and market competition. Understanding these trends helps companies make strategic decisions regarding production levels, marketing efforts, and pricing strategies.
(Source: Example.com)
Government Intervention: Regulations and Emission Standards
One significant way the government impacts the automobile manufacturing industry is through regulations and emission standards. Governments worldwide impose various regulations to ensure safety standards, environmental protection, and consumer welfare. These regulations include crash testing requirements, emission standards, fuel efficiency standards, and noise pollution regulations.
For example, governments may require automobile manufacturers to meet specific emission standards to reduce air pollution and mitigate the effects of climate change. These standards often force companies to invest in research and development to develop cleaner technologies or alternative fuel options. Additionally, governments may also provide incentives such as tax credits or subsidies to encourage the adoption of electric vehicles or other environmentally friendly technologies.
The government's role in setting regulations and emission standards helps protect public health, reduce environmental impact, and promote sustainable practices within the automobile manufacturing industry. However, it also poses challenges for companies as they need to allocate resources for compliance with these regulations while balancing cost-effectiveness and market competitiveness.
Conclusion
The automobile manufacturing industry is a vital sector that contributes significantly to economic growth and provides essential goods and services to consumers worldwide. Government intervention plays a crucial role in shaping this industry through regulations and emission standards. While these interventions aim to promote safety, environmental sustainability, and consumer welfare, they also impose challenges on companies operating in the industry. Striking a balance between government regulations and market competitiveness is essential for the long-term success of the automobile manufacturing industry.
References
Example.com (https://example.com/vehicle-sales-graph)