1.6 The 2002 production run of 25,000 new Thunderbirds included only 2,000 cars for Canada. Yet potential...

Question:

1.6 The 2002 production run of 25,000 new Thunderbirds included only 2,000 cars for Canada.

Yet potential buyers besieged Ford dealers there.

Many buyers hoped to make a quick profit by reselling the cars in the United States. Reselling was relatively easy, and shipping costs were comparatively low. When the Thunderbird with the optional hardtop first became available at the end of 2001, Canadians paid C$56,550 for the vehicle, while U.S. customers spent up to C$73,000 in the United States. Why? Why would a Canadian want to ship a T-Bird south? Why did Ford require that Canadian dealers sign an agreement with Ford that prohibited moving vehicles to the United States?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

Question Posted: