Assignment 4: Long-Term Investment Decisions

Assignment 4: Automotive Production Levels

Managerial Economics and Globalization

Abstract

The following essay will discuss the automotive product levels of Nissan Motor Company Ltd. The operational cost information, along with price and sales data for the most recent quarter available will be discussed in depth for Nissan. There are many economic theories including demand supply analysis, equilibrium price and quantity, elasticity of demand, and cost analysis that will be analyzed for Nissan. The essay will encourage readers to utilize their critical thinking skills regarding the automotive product levels of Nissan.

Introduction

The following essay will discuss the automotive product levels of Nissan Motor Company Ltd. Nissan is the sixth largest automaker in the world behind Toyota, General Motors, Volkswagen AG, Hyundai Motor Group, and Ford in 2010. It formerly marketed vehicles under the "Datsun" brand name. The company's global headquarters is located in Nishi-ku, Yokohama, Japan. Nissan also produces a range of luxury models branded as Infiniti. The Nissan VQ engines, of V6 configuration, have been featured among Ward's 10 Best Engines for 14 straight years (Decker 458).

There are nine topics that will discussed in the essay. The first topic that will be discussed is to create a demand supply analysis based on the data you collected on your chosen company’s price and sales, which demonstrates the relationship between price and quantity demanded. The second topic that will be discussed is to determine the equilibrium price and quantity and explain its meaning to your chosen company. Indicate how your chosen company’s management should use this information to make sound strategic decisions. The third topic that will be...