Executive Summary
The report explores Brazil, Argentina, and Chile’s major market indicators to help determine which mode to execute (import from U.S. or export to U.S.) of auto parts. An in-depth PEST analysis was done for each country that highlights some of the most important pieces of data from various sources. Each country has several opportunities and challenges that could affect the ease of doing business with them.
Brazil is the largest country in South America and they have a strong economy that is ranked 7th amongst the rest of the world. Their export value exceeded their import value in 2012, however, one of their major import items are auto parts. They typically only export vehicles so importing auto parts is crucial to them. One of their main economic objects is to surplus their foreign trade of imports. There are import restrictions that have been put in place such as; registering with SECEX, but they are attempting to speed up registrations and customs clearance. There are trading companies available to assist with the exporting the auto parts into the country. Imported items are subject to an import tax and several other customs duties. Although the economy is doing fairly well there, the labor pool has some challenges. They have heavily restricted labor regulations there, and large portions of the people are either semiskilled or unskilled. Brazil was ranked 7th within the automotive market in 2012 and there will be a short term demand within the industry
The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and
Now that the three weeks have ended my final earnings is negative $392. 72. I lost money from the past three weeks from the stock market project. Honestly, I was not surprised of my results. I did not take the time to research into my chosen stocks. Comparing to the Dow Jones Industrial Average I don't come nearly close to it. The Dow Jones is known to range from $17,000. My earnings is negative compared to the positive of the Dow Jones. This has taught me something if I possibly invest in the stock market in the future.
In the contemporary China’s economy, it is no doubt that Auto parts Industry has become one of the fastest growing industries which plays a major role in the development of the domestic manufacture as well as the GDP Growth.
With Brazil being the largest country in South America in land, one of Brazil’s most important industry is agriculture. Not only does Brazil have the land but its also has immense agricultural resources available to produce its goods. Some of its major exports are coffee, sugar cane, ethanol, soybeans, and beef. Other significant exports
| Opp 1- Changing foreign trade policies can provide incentives to change manufacturing facilities to different countries.
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
Brazil’s level of GDP is significantly ahead of any other country in Latin America because this country has a high-level of development of agriculture, mining and manufacturing industries and the service sector. Now the country is expanding its presence in world markets.
At the end of the stock market game the stocks that I own was Amazon, Wal-Mart, AutoZone, Ford, Kohls, Toyota, Coca-Cola, and O'Reilly. These stocks have done good since I have bought them. These stocks had their ups and down throughout the whole game, but although they didn’t have it that bad . They may have gained money, but, they also, losted money at the same time. Also, there were days where the stock price went up and down since there were people out there that was willing to pay for the stock at a higher price, but there were others that didn’t think it was worth it at a higher price.
According to the World Bank (2016), “Mexico is the second largest economy in Latin America” (Iliff, 2016). Mexico is one of the largest auto producers and exporters. “Mexico, produced 3.4 million vehicles in 2015, raking seventh largest vehicle producer in the world and first in Latin America” (Administration, I. T. (2016). Automotive manufacturing is growing, and large automotive companies such as Nissan, Mazda, Volkswagen, and GM, who have plants already established in Mexico, are now planning to expand their facilities. Half of the cars sold in Mexico are made there, and the other half is imported (Iliff, 2016).
South America has seen a more radical increase in dealer satisfaction over the last five years, as illustrated by the data and graph. Similar to North America, South America has greatly increased the amount of data through a surge of new dealers to sample from. Given the large separation and saturation of positive satisfaction from dealers, it becomes evident that this region is one of efficient positive growth that should be greatly considered in the future.
Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This
Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.
According to the case, Brazil’s first step toward developing their automobile industry was the creation of a “target plan” in 1956, which in theory gave automobile companies an ultimatum: produce their vehicles in Brazil with 90% to 95% local content in five years and have financial incentives included or leave the Brazilian market all together. Brazil’s motive behind this enforcing this plan was most likely in an effort to have the country entitled to the financial incentives that would arise from these multinational automobile companies producing their vehicles in Brazil.
The Central and Eastern European region has always carried huge potentials and various investment possibilities from the beginning of the early 90’s. This is especially factual for the automotive industry, which is considered one of the highest value added sectors of the economy, and the engine for economic growth. However, expected results have not been completely fulfilled in Romania. Since the fall of the communist era, numerous venture opportunities have appeared in the former Eastern European Block, though several difficulties, such as underprivileged infrastructure, obsolete technology and political-legal barriers, a number of multinational firms have entered the Central and Eastern European markets.
Case Solution Renault’s Logan Car: Managing Customs and Duties for a Global Production: Amanda Silverman, Prof. Hau Lee (Case: GS-62 Date: 04/29/08) Stanford Graduate School of Business) Topics: International Value Chain, Foreign Trade Related Risks & Trade Barriers