By looking at all the modes of
transportation , car have the highest cost per-person kilometre travelled
compare to busses or trains. However the demand for automobile is increasing
and inelastic especially on the rich
country. This suggest that there’s certain advantage for the consumer such as
it is able to do door- to-door travel
which no other mode of transport can do so. Despite the recent increase in
fossil fuels the demand and supply of cars in the automotive industry is
increasing. So how does car effects the economy?
You certainly doesn’t have to be
a rocket scientist to understand whether car harms or help the economy. One of
the most visible outcome of cars to the economy is the increasing of
employment. This is because the number of man power require is increasing at
the car factory and car dealer due to the increasing of demand. For example ,
new plants owned by a foreign automotive company creating job for the community.
Transporting and marketing them out are also a additional employment
opportunities created by cars. Indirectly , it reduces the number of
unemployment to the country.
Cars helped the economy a lot especially
in the middle east. Before the invention of cars petroleum is practically
useless. However after the invention of cars the demand of petroleum is increasing everyday thus it helped the
middle east country to stay out of poverty.
Without cars company such as Shell and Petronas would had not exist . The increasing number of car on the
road indirectly boost their profit as the demand for petroleum increase. (refer to the statistic below)
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