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Suppose that Congress has just passed new environmental legislation that mandates that all car makers within the next 3 years begin producing cars that don't emit carbon dioxide which may contribute to global climate change. To car makers that are not currently producing these in a SWOT, this legislation could be considered an___

A. Threat
B. Strength
C. Weakness
D. Limitation
E. Liability

User DeHaar
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1 Answer

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Final answer:

The environmental legislation requiring car makers to produce non-CO2 emitting cars constitutes a Threat in a SWOT analysis for those manufacturers not already producing such vehicles, as it may increase costs and necessitate major production changes.

Step-by-step explanation:

The new environmental legislation mandating car makers to produce cars that don't emit carbon dioxide can be considered a Threat to those car manufacturers that are not currently producing such vehicles. In a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, a threat is an external factor that could cause trouble for the business. Since this legislation would likely require significant changes in the manufacturing process and potential increase in costs due to having to install anti-pollution equipment or develop new technologies, it poses a significant challenge to the companies not already prepared for such a change.

Command-and-control regulation, like the mandatory production of non-emitting vehicles, often increases production costs for firms as they are obligated to install specific technology to comply with environmental standards. This can put existing firms at a disadvantage, especially if they have not previously invested in cleaner technologies or if they have focused on vehicles that rely on traditional combustion engines. Therefore, for these manufacturers, the legislation could be seen as a negative external influence disrupting their current operations and strategic positioning.

User ZivS
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