Which of the following models best describes the business model of large automobile manufacturers?

Automakers make money from selling cars, yes, but they also get huge tax benefits from the federal and state governments for building infrastructure in or near impoverished areas. in some ways it's similar to an economic grant.

qualitative model (2) – since the economical grant is received by building infrastructure in poor communities, there are many reasons why these automakers may keep certain prices. one possible reason is to incentivize people to move into those communities by either decreasing rent rates or increasing cost of living conditions; another reason could be that local labor demands higher wages than other parts of the region; lastly, low-income communities could be more likely to shop at small mom-and-pop establishments which would hurt grocery chains like wal mart

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