Globalization of the Automotive Industry

Like other industries such as apparel, electronics and consumer goods, the automobile industry has accelerated foreign direct investment, international trade, world production. In the automotive industry, outsourcing in major supply chains has increased, and value chain activities are actively being carried out. As a result, developed countries as suppliers are increasing their participation in trade and foreign direct investment. As supplier capacity improves, large-scale suppliers become global suppliers, and now they control the operation of multinational corporations.

The purpose of this report is to analyze the globalization of the automotive industry and provide answers to questions raised in later module assignment lectures for the global business environment. Overall, we can conclude that cars are global industries affected by various aspects. The degree and degree of globalization vary from country to country, but as a whole, the car is a global industry. Globalization has influenced the automobile industry in every business field from design to manufacturing, recruitment to investment. Business experts need to understand the dynamics of industry globalization and develop appropriate strategies to survive in competitive markets.

Focus on the globalization of the automotive industry in various ways and determine the causal relationship between industry indicators of globalization and the extent of these indicators and degrees of globalization. However, in order to fully understand globalization, it is also necessary to consider domestic and regional factors of the automobile industry. Many elements of the automobile industry remain domestically or regionally. Consumer preferences, income levels, highway driving conditions, municipal employment market regulations, public preferences such as taxes vary from country to country. These attributes have a major impact on the automotive industry, but these attributes remain in the country. (Salmon and Florida in 2000)