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How Did The American Cars Affect The Economy

207 Words1 Pages
American cars were very inefficient when it comes to fuel consumption so rising oil prices saw an increased demand for Japanese and European cars which were more fuel efficient. As a result, and to minimise their contribution towards inflation, the US government removed import tariffs on Japanese and European goods. Unfortunately, the higher demand for foreign cars put a lot of pressure on “The Detroit Three” - which consists of Ford, Chrysler and General Motors. Their revenues fell to the point where they all had to make mass redundancies across their workforce. The strain was too much for Chrysler who were on the verge of filing for bankruptcy. During this time and the following months, the United States also became very protective over
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