Economic Analysis of US Automotive Industry (Part II)

IMPORTANT! This paper is the final version including the previously submitted sections from Part I. The executive summary and ending summary/conclusion MUST cover all seven content sections. The order of the final paper should be:
1. Executive Summary
2. Brief Overview/Industry Analysis
3. Labor Costs and Quality
4. Evidence from Recent Capital Activity
5. Financial Ratio Analysis
6. Evidence of Scale Economies
7. Evidence of Scope Economies
8. Ethical Issue Analysis
9. Concluding Summary
10. References

Since you were previously graded on sections 2-5, those sections are not directly graded again in the final paper. Instead, you are assessed on how well you integrate the information from those sections into the Executive Summary and Concluding Summary. The points for Portfolio Paper II are as follows:
Executive Summary (3/4-1 page, 45 points) A succinct summary (not just an outline but an executive summary, you will lose points for failing to include your findings).

Evidence of Scale Economies: Is Bigger, Better I (1-2 pages, 45 points)
1. Why — or why not — a big firm in this industry?
2. Why a small firm and how does it avoid competing with a big (An example always helps)?
3. Design a study of scale economies

Evidence of Scope Economies: Is Bigger, Better II (1-2 pages, 35 points)
1. Do firms produce products that are related to each other?
2. What is the advantage of this production strategy (if any exists)?
3. Design a study of scope economies

Ethical Issue Analysis (2-3 pages, 55 points)
1. Identify an ethical issue
2. Explain the direct and indirect effects of the issue on the relevant stakeholders
3. Are moral hazard or adverse selection involved in the issue?
4. Identify and explain issues not yet commonly acknowledged (may be unrelated to the first ethical issue)

Summary (2 pages, 40 points) Given what you have learned, do you want to
1. Work in this industry (short term prospects and long term prospects); and
2. Own capital in this industry (short-term prospects and long-term prospects)
(Your summary should be backed up by the research you conducted and the analysis you included in the prior sections.)

References (40 points)
1. Industry level sources are included
2. Business periodicals are included
3. Something extra (e.g., interview or trade journals) is included
4. This list reflects the reading of an “expert”.
Total points for the above sections: 260