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Published by: Ivey Publishing
Originally published in: 1993
Version: 2002-06-26

Abstract

The North American automobile industry has had to restructure in response to Japanese competition, and autoparts manufacturers have had to alter products and production processes. This sector has been particularly sensitive to the Canadian foreign exchange rate vis-a-vis the US dollar. Autotube illustrates the problems of a small business in the context of a rapidly changing industry. The division of autoparts manufacturers into tier 1 and tier 2 firms, with the latter selling to the former, has facilitated the necessary adjustments.

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Abstract

The North American automobile industry has had to restructure in response to Japanese competition, and autoparts manufacturers have had to alter products and production processes. This sector has been particularly sensitive to the Canadian foreign exchange rate vis-a-vis the US dollar. Autotube illustrates the problems of a small business in the context of a rapidly changing industry. The division of autoparts manufacturers into tier 1 and tier 2 firms, with the latter selling to the former, has facilitated the necessary adjustments.

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