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Q: Is the used car market perfectly competitive?
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A car manufacturer may regard his business as highly competitive because he is keenly aware of his rivalry with the other car manufacturers in the market when making pricing and investment decisions?

Oligopoly structure


Explain the competitive and conversion effects of exchange rate changes on the firms operating cash flow?

1. Explain the competitive and conversion effects of exchange rate changes on the firm's operating cash flow. Due to random change in the exchange rate a company's competitive position in the market place changes. For example if the Yen depreciates against US dollars then a Car manufacturer in USA will be adversely effected, as the Japanese imported cards become cheaper due to change in the exchange rate of Japanese Yen. On the other hand if a Japanese owned car is being produced in USA than that too will be adversely effected , however if its components are being imported from Japan, they may cost lower thus they will gain some advantage over the US manufacturer which makes all the components in US. In this case the US car manufacturer like Ford or GM will lose their competitive position to the Japanese subsidiary in US, thus effecting their cash flows adversely. The Competitive Effect is a change in the firm's competitive position in the market which may arise due to change in cost or price. The US car manufacturer's cash flow will decline due to the unfavourable change in the competitive position in the US markets. The Conversion Effect is evident when a parent company's balance sheet reflects the foreign subsidiary cash flows by converting in the domestic currency. For the Parent company the Domestic currency appreciation results in smaller domestic currency receipts and Domestic currency depreciation results in larger domestic currency receipts. If Yen depreciates then the Japanese parent company will value the receipts from a US subsidiary at a higher rate in Yen showing a larger domestic currency receipt.


What is a sentence using the term market value?

Although you can pay a lot for a fancy car, its market value will decrease with age. Winning a championship can raise the market value of a professional sports team. The company was still profitable, but competition had reduced its market value.


Describe two benefits you enjoy because of the free market system be sure to state why the free market system brings each of these benefits?

My job and my car are two examples of the benefits of a free market system. Free market means I choose. I chose a career path based on my likes and dislikes and looked for a job that best reflected my interests. I like economics, therfore I did not become a cook. I chose my car from various dealers. No one forced me to accept a car I did not like. The problem is when a free market becomes a monopoly. In a monopoly you have no choice and have to accept whatever they offer at the prices the supplier stipulates.


What is the difference between East Asian state guided economics and American market driven economics?

East Asian state guided economy focuses on product development for example: How to build a fuel efficient car to open market and increase profit. American market driven economy focuses on making profits and puts less focus on product development for example: Instead of developing a fuel efficient car, the General Motor will choose to purchase a foreigh car company such as Saab of Sweden in order to increase profit.

Related questions

What is a Palindrome for a vehicle used in competitive driving?

race car


Where can I find the market value for my car?

There is nothing worse then over paying for a car so it is always smart to check the market value for any new or used car. The blue book has been used for many years to determine the market value of a car.


How can car quotes be helpful to a car buyer?

Quotes are helpful to ensure the buyer is getting the best quality for the price they are looking for as well as keeping the market competitive by comparing cars and sellers.


A car manufacturer may regard his business as highly competitive because he is keenly aware of his rivalry with the other car manufacturers in the market when making pricing and investment decisions?

Oligopoly structure


How can you find the best price for car insurance?

One can find the best and competitive prices for car insurance using a price comparison website such as Go Compare and Compare the Market and Money Supermarket.


What are some good websites to buy a used car?

Auto Trader should be the industry standard for used car market.


Is there a car dealer in Sacramento?

There are many car dealers in Sacramento. You have the option of used versus new dealers all over the city. Sacramento is very competitive in the car industry.


Difference between primary market transaction and a secondary market transaction?

An example of a primary market transaction would be the act of someone buying a brand new car. A secondary market transaction would be someone buying a used car.


Where can we exactly find good condition used car near Burlington?

There are several used car dealerships near Burlington. I would recommend Kerry Toyota in Florence. They have a great selection of used cars at competitive prices.


What GPS can be used with an after market car stereo?

Any GPS with a FM transmitter.


Global Car Body Kit : Market Growth, Opportunity and Forecast 2023-2029?

Bharat Book Bureau Provides the Trending Market Research Report on “Global Car Body Kit Market 2023-2029”under Automotive Research Report Category. The report offers a collection of superior Market research, Market analysis, competitive intelligence and Market reports. The global Car Body Kit Market is likely to register a CAGR of over 4.34% with an incremental growth of USD 33.9 billion during the forecast period 2023-2029. A car body kit is a set of exterior modifications made to a car's bodywork. It typically includes enhancements such as spoilers, side skirts, front and rear bumpers, and other aerodynamic features. Car body kits are designed to improve the car's performance and appearance, and are often used for racing or to give the car a more aggressive or sporty look.A car body kit is a set of exterior modifications made to a car's bodywork. It typically includes enhancements such as spoilers, side skirts, front and rear bumpers, and other aerodynamic features. Car body kits are designed to improve the car's performance and appearance, and are often used for racing or to give the car a more aggressive or sporty look.


Can you use deep well water to wash car?

Yes, that's perfectly safe.Yes, perfectly safe.