Globalisation and Australian Automotive Industry
Globalisation and World Today globalization is essentially a synonym for global business.
Globalization is changing the world we live in at a very increasingly rapid pace (Rodrik., 1997).
Changes in technology, communication, and transportation are opening up borders and markets at
increasing rates. In any large city in any country, Japanese cars ply the streets, a mobile call can be
enough to buy equities from a stock exchange half a world away, local businesses could not
function without U.S. computers, and foreign multinationals have taken over large segments of
service industries. Impact of Globalisation, both theoretically and practically, can be observed in
different economic, social, cultural, political, financial, and... Show more content on Helpwriting.net
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There are three major motor vehicle producers (MVPs) Ford GM Holden Toyota There are 200
component, tooling, design and engineering firms in Australia. All three companies are the
subsidiaries of major overseas producers. Mitsubishi Motors closed its production in March 2008,
though it remains in the market as an importer of a full range of vehicles (AustralianGovernment,
2009). In 2007, the market recorded sales of over one million vehicles for the first time. The
number of passenger vehicles sold increased by 1.8% (on month to month basis) to 41,700 in April
2009. The rise was the largest monthly increase since November 2007, and is a sign of
improvement instead of rising fuel prices and global economic turmoil. Total Australian Vehicle
Production, Domestic Sales and Export Sales 200320042005200620072008 Domestic
sales276,392274,537248,912201,622200,485171,432 Export sales120,178 131,474
142,022132,742140,243162,929 Total sales396,570406,011390,934334,364340,728334,361 Total
domestic Production406,668407,537387,821328,512335,625324,118 Source: VFACTS; DIISR Key
Automotive Statistics; FCAI (AustralianGovernment, 2009) Emerging economies like China, India
and Thailand are rapidly expanding their vehicle and automotive component production. At the
same time, these and other emerging economies, apply various tariff and non tariff barriers which
serve as a hindrance on
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