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Therefore, local car-makers are hard to survive in this tiny market without any advantages. Unfortunately, active used-car market which cars... ... middle of paper ... ...ts See Risk of Australian Recession, New York, N.Y. Fraser, K., Watanabe, C. & Hans-Henrik Hvolby 2013, "COMMITMENT TO SERVICE QUALITY IN AUTOMOTIVE DEALERSHIPS: RESULTS FROM AN AUSTRALIAN PILOT STUDY", Journal of Services Research, vol. 13, no. 1, pp. 7-29.
By taking part in the global market it allows countries to specialize in their production of goods and services and give them what is referred to as the comparative advantage. This advantage enables nations to specialize in certain products which then become a major part of their Gross Domestic Produce (GDP). As the Australian car industry only makes up 0.53% of the total GDP it is only logically to conclude that for various reasons Australia is not a country that is able to s... ... middle of paper ... ...ther $200million in additional funding the car industry. Businesses (specifically the car industry), also played a part with management at an international level taking Australian government handouts whenever offered when they really had little ambition to keep the car manufacturing industry in Australia. Despite common belief, the moving of the car industry overseas is not necessarily bad for the Australian economy.
1. Introduction Automobile firms like GM Holden, Toyota, and Ford decided to shut down their plants in Australia and shift to another country. The automobile industry ranks among the crucial significant business phenomena of the twentieth century and remains vitally important today. Other words, the world’s automobile industry has played an important economic role (Wynn-Williams, 2009, p. 2). It is now is one of the largest industries in the world, the industry of industries (Drucker, 1972 , p. 176).