Oligopolies are known as big businesses. Select an oligopoly and discuss how globalization may have affected...
Oligopolies are known as big businesses. Select an oligopoly and discuss how globalization may have affected its resource allocation. (Hint: Discuss at least one major issue such as outsourcing or regulation, so your classmates may discuss other relevant issues)
Homework Answers
answer:
Auto industry is an example of an oligopoly market. Major companies are Fiat Chrysler, Ford, GMC etc.
globalization may have affected its resource allocation as follows:
- Availability of cheap labours
- Increase in employment
- Proper utilization of resources
- Increases in performances due to market competition
Outsourcing related to oligopoly:
USA is engaged in outsourcing of relatively labour intensive techniques. As labour power is cheap in developing countries so they outsource labour resource from these countries.
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