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  • Essay / Globalization of the Japanese automobile industry

    The tendency of business, technology or philosophy to spread globally is known as globalization. The word “globality” is used to define the global economy which is classified as a mutually dependent market, unaffected by time zones or even national boundaries (Rouse, 2007). Globalization and increasing technological knowledge have led to an era of geopolitical evolution. People from different backgrounds have the opportunity to work together. However, there is uncertainty about the emergence of two civilizations with two views of the world. One has the ability to develop and exploit knowledge, while the other is the recipient of knowledge and unable to reshape it. (Shuja, 2001). Globalization has changed the world in many ways. First, by accelerating relations between nations in terms of economy and society, such that events in one country have a direct impact on others. Second, the intensification of interconnectivity in terms of trade flows, capital and communities across the world (Rosenau, 1990). Finally, the progress of the automobile industry has contributed to the process of accelerating development and international interactions. Japan has experienced globalization in multiple ways. The Japanese auto industry first encountered globalization in the mid-1990s when it lost its advantage as a low-cost country, leading it to produce parts overseas for reduce costs. Between 1994 and 2006, the rate of investment in overseas production houses doubled while overseas parts manufacturing increased by around 13%. At the same time, imported manufactured goods tripled from the 1980s to the end of the 2000s (Schaede, 2009). The result, however, is that most manufactured goods...... middle of paper ......am, W. 2003 Journal of Consumer Marketing. Bradford: MCB University Press Limited. Hollensen, S., 2011. Global Marketing. Edinburgh Gate: Pearson Education Limited. Rosenau, J.N., 1990. Turbulence in world politics. Brighton: Harvester Wheatsheaf. Rouse, M., 2007. Globalization. [online] Available at http://searchcio.techtarget.com/definition/globalization [Accessed February 25, 2014]. Schaede, U., 2009. Globalization and reorganization of the Japanese auto parts industry. [pdf] Available at: http://irps.ucsd.edu/assets/033/10612.pdf [Accessed February 26, 2014]. Schonberger, RJ, 1982. Japanese manufacturing techniques. New York: The Free Press. Shuja, SM, 2001. Coping with globalization. Contemporary Review, 279 (1630), pp.257-263. Wood, A., 1998. Globalization and the rise of labor market inequality. The Economic Journal, 108 (450), pp...1463-1482.