Thursday, December 4, 2008

Guess who's on your side?

Ford, GM and Chrysler aren't the only ones worried about going out of business. Apparently, so are their top foreign competitors.

Japanese and Korean car makers are afraid that allowing the Big-3 to go belly up would further reduce aggregate demand in the U.S. economy. Sure the likes of Honda, Toyota and Hyundai would increase their U.S. market shares, but it is feared that the reduced consumer spending accompanying the Big-3's collapse would cancel out the gains from increased market capitalization.

Weird, considering competition is supposed to be the foundation of business! It's odd how things work sometimes...

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