Read The Gulf News, The National, listen to the radio, watch TV, scan the internet and look for news events where you can see the principles and concepts of microeconomics playing out in business.
Concepts Of Microeconomics
Length: 9 pages (2687 Words)
Gulf News 15 th 0ctober 2012 Stockholm: Volvo to halt Sweden production
Volvo Cars, owned by China’s Geely Holding Group, has decided to temporarily halt production at its main Swedish plant for one week as demand in the automotive market continues to slip in recession-hit Europe. The Goteborg-based carmaker says on Monday the production halt will affect some 3,300 employees and will last from October 29 to November 2. The workers will be compensated through a variation of paid leaves. Volvo Cars’ CFO and Acting President, Jan Gurander, says “Europe is the main market for Volvo Car Corporation and the continued recession is naturally affecting the demand.”
The above article illustrates market failure. An article reported on the recession that occurred in Europe resulted to the close down of Volvo car production Factory in Sweden due to decrease in the people preferring this car make. Europe, whatsoevers, is a major market for Volvo cars.
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