Why is it not a good time for the auto industry to expand production capacity?
Why Detroit’s Big 3 Might Be Reluctant to Add Jobs

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Business, Social Studies
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University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Ride-sharing has no impact on car sales.
There is already sufficient production capacity.
The market is currently unstable.
Auto sales are expected to grow significantly.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one reason why Detroit's big three might be hesitant to increase jobs?
They have already reached maximum employment.
They are experiencing a decline in sales.
They are facing tough comparisons with previous administrations.
They are planning to move production overseas.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What could be a consequence of imposing tariffs on Mexican plants?
Decrease in car prices.
Immediate job creation in the US.
Relocation of production to Asia.
Increased production in Mexico.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How might foreign automakers be affected by pressure to increase US jobs?
They can easily relocate all production to the US.
They are unaffected by US policies.
They face challenges due to a smaller voice in negotiations.
They have a strong bargaining position.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential risk of building new plants in the US?
Overcapacity if car sales decline.
Increased reliance on foreign parts.
Immediate return on investment.
Reduction in production costs.
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