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While this is all true, there is a tendency that big markets create big players. Eg. in the 1950s/60s, many European countries had several independent car manuf
by bewo001 8y ago
While this is all true, there is a tendency that big markets create big players. Eg. in the 1950s/60s, many European countries had several independent car manufacturers. The cheap car in your country may have been worse than a cheap car of your neighboring country, but it cost less for the lack of tariffs. The local manufacturer had your business. When the borders came down, the smaller companies could no longer compete.
- 0815test 8y agoThe general pattern is that big markets create big players, but also increase the amount of "effective" diversity and competition at the local level. The smaller automakers of the 1950s and 1960s were essentially monopolies in their own countries; whereas with the borders coming down, manufacturers are incented to both compete and diversify in a meaningful way, so that some fraction of them can hold on to their share of the bigger, unified market.
- heavenlyblue 8y ago>> Eg. in the 1950s/60s, many European countries had several independent car manufacturers. The chance is that your point has nothing to do with the borders being open though.
- bewo001 8y agoBorders were certainly not the only factor. As car development became more expensive, only bigger players had the capital to do it. But different national regulations (eg in France head lights had to be yellow instead of white) and tariffs played a role.
- kelnos 8y agoNot sure that was necessarily a good thing. Were I a consumer in a country with a crappy car manufacturer, I'd definitely not be pleased that I couldn't buy a better car simply because my government was protecting the crappy car manufacturer's business.