Saturday, June 07, 2008

Unit 2: Efficiency; restructuring in the insurance industry

Two articles from the BBC seem to indicate that competition in the insurance industry is causing firms to seek greater economic efficiency

http://news.bbc.co.uk/1/hi/business/7440733.stm

http://news.bbc.co.uk/1/hi/business/7439589.stm

a) What type of efficiency will these job losses lead to?
b) Why are the 2 firms following this course of action?

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