for theseassignment I say 40

Case Problem 7.2
a)
Other information that might be helpful in evaluating an auto stock includes monetary policy, government policy, foreign trade, balance of payment, inflation rate, consumer spending and investment plan of business. As each of the factors are important but the three most important are cost of oil, interest rates and foreign trade.
Interest rates – Since the automobiles are purchased on credit, the interest rates are important.
Foreign trade – It is important because of the effects of auto export and import have on auto sales also it affects the dollar value which makes U.S. cars expensive to import.
Cost of oil – The cost of oil is observed by drivers and it can affect the demand of gas compared to more efficient fuel cars.
b)
1) Auto Imports – It clearly define more potential growth for domestic producers. The latest growth in imports is because of the expense by U.S. producers.
2) Relationship of United Auto Workers (UAW) and auto makers – This relationship is important in the analysis. A good relationship results in low cost of production and bad relationship results in strikes, high...