· Select an industry that is affected by the economy, such as the airline, automotive, home building, or technological industry. Keep in mind that you must use the industry chosen throughout the course.

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Selecting an industry that is affected by the economy is an essential requirement for this course. One industry that is greatly impacted by economic conditions is the automotive industry. This industry is closely tied to economic factors, such as consumer spending, interest rates, and overall business climate.

To explain how the automotive industry is affected by the economy, we can analyze a few key factors:

1. Consumer Spending: During economic slowdowns or recessions, people tend to cut back on discretionary expenses, including purchasing new cars. When consumer confidence is low, individuals may postpone buying a new vehicle, leading to a decrease in demand for automobiles. On the other hand, during periods of economic growth, individuals have more disposable income and are more likely to buy new cars, boosting the industry.

2. Interest Rates: Interest rates have a direct impact on auto loans, which are a significant source of financing for vehicle purchases. When interest rates are low, it becomes more affordable to finance a car, encouraging consumers to make purchases. Conversely, when interest rates rise, the cost of financing increases, making it less attractive for consumers to take out auto loans, resulting in decreased demand.

3. Business Climate: The automotive industry is made up of various companies, including manufacturers, suppliers, and dealerships. The overall business climate, including factors such as government regulations, tax policies, and trade agreements, can affect the industry's profitability and performance. Changes in regulations or trade policies can impact production costs, supply chain operations, and market access, influencing the automotive industry's competitiveness and profitability.

It's important to note that these factors are interconnected and often influenced by broader economic indicators, such as GDP growth, employment rates, and consumer sentiment. Monitoring economic indicators can provide insights into the current state of the economy and help predict potential trends for the automotive industry.

Throughout the course, you can analyze these economic factors and their impact on the automotive industry, explore case studies, and evaluate strategies that companies within this industry employ to navigate economic challenges and capitalize on opportunities.