Answer to Question #316424 in Microeconomics for llllxu

Question

What decision that the Honda and Proton made using by company and how to reduce the cost of production

Answer 1

First, we must learn about Proton.

PROTON Holdings Berhad (PHB; abbreviated Proton) is a Malaysian automotive company and automobile corporation that is involved in automobile design, manufacturing, distribution, and sales. Proton was founded in 1983 and served as Malaysia's sole national badged car company until the arrival of Perodua in 1993. The company's headquarters are in Shah Alam, Selangor, and it also has offices in other cities. 'Proton' is an abbreviation for Perusahaan Otomobil Nasional in Bahasa Malaysia (National Automobile Company).

In the 1980s and 1990s, Proton was a manufacturer of rebadged Mitsubisi Motors (MMC) products. In the year 2000, Proton produced its first indigenously designed (though Mitsubishi-engineered) non-badge engineered car, elevating Malaysia to the 11th country in the world with the capability of designing cars from the ground up.

Proton has produced a mix of locally engineered and badge engineered vehicles since the 2000s. Proton automobiles are currently available in at least 15 countries, the vast majority of which are in Asia.

Honda Motor Co. is an international industrial company that is a leading Japanese motorcycle manufacturer as well as one of the world's top automobile manufacturers.

These companies' collaboration will lower the cost of new scientific developments because they can be carried out jointly and used by each company.

When the cost of production per unit of production is reduced, the selling price can be reduced. What gives you a pricing advantage over your competitors.