Globalisation and Australian Automotive Industry

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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…
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 2003 2004 2005 2006 2007 2008 Domestic sales 276,392 274,537 248,912 201,622 200,485 171,432 Export sales 120,178 131,474 142,022 132,742 140,243 162,929 Total sales 396,570 406,011 390,934 334,364 340,728 334,361 Total domestic Production 406,668 407,537 387,821 328,512 335,625 324,118 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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