Question

The U.S. market for computers is dominated by domestic firms such as Dell, Hewlett-Packard, and Apple. The U.S. market for consumer electronics is dominated by Japanese firms and brands such as Sony, JVC, Panasonic, Mitsubishi, and Toshiba. However, the U.S. automobile market includes both domestic firms like Ford and General Motors and formidable Japanese competitors like Toyota and Honda. Please discuss the following two questions:

1. Do some theories work better than others for different industries? Why?

2. What other industries can you think of that fit one of the three patterns noted in the chapter (dominated by foreign firms, dominated by U.S. firms, or dominated by a combination of U.S. and non-U.S. firms)?

Answer 1

1. Yes, some theories work better than others for different industries because the firms in that industry follow the agreement or collusive terms and conditions in different way in different industries. This is true specially in oligopolistic type of market structure.

2. The Apparel and Gaming industry in U.S. is dominated by foreign firms, Service and technology products are dominated by U.S. firms and smartphone industry is dominated by combination of u.S. and non-U.S. firms.