[Neha]

Originally Posted by aashima

Here is our first question.
Ques 1: Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices — make deals — to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information — the dealer about the product and the consumer about his true desires.

(1) As a result, ‘deal making’ becomes rampant, without concern for customer satisfaction.
(2) As a result, inefficiencies creep into the supply chain.
(3) As a result, everyone treats the other as an adversary, rather than as an ally.
(4) As a result, fundamental innovations are becoming scarce in the automobile industry.
(5) As a result, everyone loses in the long run.

Well, option3 i.e "As a result, everyone treats the other as an adversary, rather than as an ally." seems appropriate.
Whats the answer??