Globalization of the Japanese automobile industry

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The Inclination of businesses, technology or philosophy to spread worldwide is known as Globalization. The word “globality” is used to define the global economy which is classified as a mutually dependent marketplace unaffected by time zones or even national limits (Rouse, 2007).Globalization and the increase of technological knowledge has led to an era of evolution in geopolitics;people from different walks of life are given the chance to work together.However, there is an uncertainty that two civilizations with two points of view the world will surface. One having the capability to develop and exploit knowledge, while the other being on the receiving end of knowledge and unable to reshape it. (Shuja, 2001).

Globalization has changed the world in many ways, Firstly by accelerating interrelationship between nations in terms of the economy and the society in a way that events in a country directly impact unto others. Next, the intensification of interconnectedness in terms of flows of trade, capital and the community around the world (Rosenau, 1990).Lastly, the advancement of the automobile industry has aided the process of acceleration of international development and interactions.

The automobile industry in Japan has gone through globalization in countless ways. Japan’s automobile industry first faced globalization in the mid-90s when they lost their low cost-country advantage, causing them to produce parts overseas to reduce cost. During 1994 to 2006 the ratio of investments in production houses abroad doubled while their manufacturing of parts overseas has increased about 13%. At the same time, the manufactured products imported have tripled since the 1980s until the late 2000s (Schaede, 2009).The outcome however, most manufa...

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