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COURSEWORK

I) The world's leading vehicle companies have seen the UK as being an important location for manufacturing. The market structure of the motor car industry in the UK is an ongoing market and also a very large market with many benefits and drawbacks. The motor car industry in the UK has seen a number of UK-based companies' setup. Ford was first established here in 1911, another 243,000 have since joined, including General Motors, BMW, Honda, Nissan, Peugeot and Toyota. There are a huge number of people employed in the motor car industry either in the design and manufacture of vehicles and components or the supply, distribution and service chain.

The manufacturing sector contributes around £8.5b added value to the economy, and accounts for 1.1% of GDP (Gross Domestic Product), 6.2% of manufacturing value-added and 9.5% of total UK exports of goods. The UK is home to the world's most successful motor sport industry.

Market structures are the characteristics of a market which determine a firm's behaviour.
There are four different types of market structures these are as follows:

 Monopoly Market- exists when there is only one supplier in the market.

 Oligopolistic Market- exists when there are a few different suppliers/producers in the market.

 Perfect Competition or Monopolistic Competition- where there is a large number of small suppliers, but none of which is large enough to dominate the market.

The key characteristics of market structures are:
• The number of firms in the market and their size
• The number of firms which might enter the market
• The ease or difficulty with which new entrants might come in
• The extent to which the goods in the market are similar
• The extent to which firms in the market share the same knowledge
• The extent to which the actions of one firm will affect another firm

Perfect information is given to buyers in order for them to make adequate purchases within the...