Question

In: Economics

In today's economy , what companies have surprisingly struggled or not struggled with changing capacity for...

In today's economy , what companies have surprisingly struggled or not struggled with changing capacity for their products/services?

Solutions

Expert Solution

Ans: In today's economy the following companies have surprisingly struggled a lot.

  • The real estate companies because people are not having sufficient investment amount to invest in the real estate because the future possibility of the rate of return of the real estate is very poor as per the present scenario.
  • The automobile sector is also struggling a lot because in this sector the expenditure level is very high and because of less productivity in today's economy people are not purchasing luxury goods because they are referring to necessity goods in the present scenario.
  • The fashion industry and the home decor industry is also suffering a lot because again this type of industry belongs to the higher class of the society and the expenditure level is high only in the case when the money supply in the economy is good therefore in this situation where people are not having sufficient stability of income then it is very difficult to purchase fashionable goods.

Following are the category of industry where they are not struggling.

  • Medical industries which are making medicines and medical equipment are in high demand because in the present scenario everyone is more concerned about the health and the medical expenses, therefore, they are referring to purchasing medicines and that's why the expenditure level on medicine is also very high.
  • The food industry is also not struggling because it comes under the category of necessity goods and the priority of the consumer is to raise their expenditure on food items instead of the luxurious items.

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