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Business, 10.02.2020 22:19 jaredhoag1982

"Firm X, a leading manufacturer of rubber tires in country A, caters to almost one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon Reeds, the CEO of firm X, feels that these fluctuations in the business environment are short-lived and expects the economy to recover very soon. In spite of the recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The firm's marketing head, Sandra Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making large-scale investments in the present climate. Which of the following questions is most relevant to answer in order to determine the accuracy of the CEO's claim? A. What is the tire industry's contribution to the country's GDP? B. What proportion of total employment does the tire industry account for? C. How quickly did the economy recover the last time there was a recession? D. What are consumer expectations of future growth? E. Does the current recession affect every firm in country A equally?"

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