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When Workers Connected with the Automobile Industry Go on Strike

Question 409

Essay

When workers connected with the automobile industry go on strike, it typically makes big headlines
since the automaker will usually end up being shut down if the strike drags on. Suppose the makers
of brakes for GM go out on strike and GM has no other source from which to purchase brakes for its
new automobiles. Explain how following a restrictive current asset management policy would affect
GM in this case. What are the pros and cons of GM moving to a more flexible policy?

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If GM follows a restrictive policy, it w...

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