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22 October, 09:38

What effect did increased automobile production have on other industries

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  1. 22 October, 10:07
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    The development of the automobile production industry generated a chain effect and triggered the emergence of related industries, those located on both sides of the production value chain (suppliers and subsequent distributors and sellers).

    Also some other unrelated businesses appeared due to the multiplicative effect that occurs in economics. As many employees of the automobile sector started to gain a salary and to demand products, the supply-side grew, new companies appeared or old ones expanded, to meet the desires of the demand side.
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