Please use the economics knowledge you have learned so far toanalyze the case below. You can propose your own questions and thenanswer them. Remember, there is no absolutely correct answer tothis exercise. Its purpose is to provide you an opportunity todemonstrate your ability to think like an economist by applyingeconomic principles to interpret the logic of a real-worldphenomenon.
Economic Growth and the Business Cycle at Corning, Inc.
In 1851, Amory Houghton founded the company that became Corning,Inc. By 2015, Corning had more than 34,000 employees and sales ofnearly $10 billion. Corning’s experience has mirrored two keymacroeconomic facts: In the long run, the U.S. economy hasexperienced economic growth, and in
the short run, the economy has experienced a series of businesscycles. During the 2001 recession, Corning suffered a $5 billionloss as the market for fiber-optic cable collapsed. Similarly, therecession of 2007–2009 caused a sharp decline in durable goods,which caused Corning’s sales of ceramics for automobile emissionssystems and display panels for computers and televisions todecline. Despite these setbacks, Corning continued to make a profitduring the recession due to sales of new products, such as Gorillaglass. A similar product, Willow glass, can be wound and shipped inrolls, which might make it possible for Apple and other firms toproduce foldable electronic devices.
