Managerial Economics 12th Edition by Mark Hirschey

Exercise 1

In 2007, Chrysler Group said it would cut 13,000 jobs, close a major assembly plant, and reduce production at other plants as part of a restructuring effort designed to restore profitability at the auto maker by 2008. Its German parent, DaimlerChrysler, said it is looking into further strategic options with partners to optimize and accelerate the plan as it seeks the best solutions for its struggling U.S. unit. Does this decision reflect an application of the global or partial optimization concept? Explain