Globalization of the Automobile Industry

Only available on StudyMode
  • Download(s) : 236
  • Published : January 15, 2011
Open Document
Text Preview
Contents
Page Introduction........................................................... The globalization .................................................. The growth and development of globaalization

The global key players in the industry
The relevant issues to the Automobile industry....
WTO issues
Global monetary issues
Impact of trading bloc
The impact of emergin markets
Ethical issues
E-commerce issues
Current trends in the industry sector in terms of...
Sourcing
Production
Markets
Growth or Decline
Conclusion.............................................................

Bibiography...........................................................

Appendix...............................................................

Introduction
With the continual rise of global business activities and increasing customers’ needs, globalization activities are becoming more fluential from many differnet aspects whether good or bad. What is globalization? Globalization is to toward to a more integrated and interdependent world economy(Hill,2007). It is trying to eliminate the barriers to cross-border business trade and capital investment. People can share the resources from the world. In today, you might have a car designed in Germany that was assembled in China by Ford from components made in the United States and Japan. The goods and services are expanded across the world and the mutual use of resources, that is the purpose globalizaiton eventually wants. This report is to investigate the impact of globalization on the automobile industry. Because, the automotive industry is a more comprehensive industry than others, it not only involves human resources, technology, raw material purchase, product sale but also would face the external factors from political and economic. Especially as the result of the heated competition between automakers, they are looking for the places with lower labour costs or lower raw materials around the world in order to reduce the production costs. However this global activity is also affected by national or international policies at the same time, such as import/export tax and currency exchange rate. it is essentional to discuss the issues that the automobile industry involved then provide factual and analytical views to readers. The globalization of automobile industry means that a car is contributed by many workers from different countries. The automakers limit the cost by designing, outsourcing and assembling in different countries around world with the lower labour cost and cheaper materials to maximize the profits. The report is structured in three sections. First, analyse current state of globalization and identify the key players in automobile industry. Second discuss relevant issues to automobile industry and illustrate the impact of globalization on automobile industry, the issues include WTO issue, global monetary issue, ethical issue, e-commerce issue and impact of trading blocs. Last, analyse the current trend in terms of sourceing, marketing and production. Finally, the range of sources used in this report come from academic text books, electronic articles and authorised websites. The relevant data are from offical statistics. The quotes and sources are marked.

1.The globalization
The globalization is not only appeared in the recent decades. Many centuries ago, human societies have started to establish more closer relations from a side of the world to the another. In 1600, the establishment of East India Company is a good example of globalization. The presence of the company enhance business trade between Asia and Europe, also promote the local economic development in the UK(Encyclopaedia Britannica, 2008). However, from the 1920s to...
tracking img