Impact Of Globalization In The Automobile Industry

The global business environment has evolved dramatically over the past several years. These changes come with both positive and negative aspects that companies now face within this global economy. Globalization has its advantages and disadvantages. Some advantages of globalization is that there is a worldwide market for companies and better access to products from different countries, cash flows is steady which decreases dollar value, lots of options for investment, technological development, and increase demand of product. Some disadvantages of globalization are many people are losing jobs because of outsourcing, corporates are building up units in other countries, leading to social degeneration, and loss of cultural identity. Globalization has made the way for a free trade and business model in the United States. Realistically, it has the potential to make the world a better place.
People around the globe are more connected to each other more than ever before. Information and money flow more quickly than ever. Global auto industry products and services are produced in several parts of the world are available in all over. International automobiles are more frequent. Globalization is an economic tidal wave that is sweeping over the world. The automobile industry is typically considered to be at the forefront of globalization.
General External Environmental factors affect every industry in different ways. Today, just about every automobile is made somewhere other than the United States. Really, there is no such thing as an American built vehicle with exclusive American parts. The automobile industry is one that is affected by globalization. More firms are expanding their operations and market reach beyond the borders of their “hom...

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... efficiency, safety, and comfort.” In IDC Manufacturing Insights’ report, it’s basically saying that strategies should shift from economy of scale to economy of scope, which focuses on global flexible manufacturing capabilities. The world’s population of cars has reached one billion as of 2010. High growth rates of car ownership in China, India, and Brazil has reflected economic development and demand in those countries.
As a final point, Globalization has had some positive and negative effects on the automobile industry. Globalization has been used by companies to gain a competitive advantage over the competition, which has been a burden on to them. Jobs have been loss as result to globalization. During the first recession, employment shrank dramatically and, despite employment growth in the mid1980s and 1990s, employment has never since recovered its 1978 level.