Both indications are consistent with management's strategy to increase productivity in new markets and introduce new products. So, Ford spends money on new capital assets, research and development, and borrows capital to finance its innovations and expansion strategies. Ford mentions that they are increasing their participation in newly developed and emerging markets (SEC, 2015). Another correlation between the management discussion within Fords 10-k and the financial analysis contained in this essay is Ford's market expansion in the Pacific Asia Africa segment (SEC, 2015). Because Ford enters new markets, its selling and administrative costs increase. Costs include hiring new salespeople and promoting their new products to new market segments. Thus causing the increase in selling and administrative costs in the horizontal analysis of the income statement. Additionally, Ford's fixed assets are also increasing because they are investing in new land and equipment to manufacture their new vehicles.