Global Production Networks and the Role of Government in the Auto-Mobile Industry

This article discusses the concept of Global Production Networks (GPN) and the role of government in the auto-mobile industry. It also covers ethical issues faced by international business and the causes of unethical behavior by international managers.

MNM528 International
Management

TABLE OF CONTENT
SECTION A.....................................................................................................................................3
Question 1....................................................................................................................................3
Section B..........................................................................................................................................6
Question 3 Ethical issues faced by international business...........................................................6
b) The causes of unethical behaviour by international managers................................................8
REFERENCES..............................................................................................................................11

SECTION A
Question 1
Answer
Global production networks (GPN) is a concept in the development of the literature
which refers to the nexus of interconnected functions, operations and transaction through which
the specific products or services are distributed and consumed. For the auto-mobile industry the
focus on the demand structures for vehicles are shifting enormously in some cases for the
presentation of the manufacturers with major challenges. GPN for the car manufacturers explains
the ways in which it is able to reorganize the production and sourcing in the way of productions
and sourcing the structure better match regional demand to achieve a holistic cost optimism. This
is helpful for increasing the production flexibility, regionalized manufacturing and risk
management with appropriate levers to deal with uncertainty arising from trade conflicts rising
transportations costs and borders closures.
The automotive manufacturers can emerge stronger from the recent conflicts and increase
their financial health with new risks profiles and novels supply strategies. It is also considered as
the simplification of the shortening and regionalize their value chains with more agility and
digital innovation technology for bing able to adapt to new features in the manufacturing of the
auto mobiles. The future trends of these industries global production networks is considered to
be the change which is helpful for the mobility of the ecosystem that includes the mobile
innovation and autonomous technologies, digital features and electric vehicles manufacturing.
Some research is able to analyse that the research and analysation of the industry helps in
triggering a major disruption in the next 10 to 15 years. It is also the factor which is said to be
responsible for influencing the work of the automotive manufacturers.
Following are the key features of global production networks,
Interconnected Functions :
The global production network is one of those networks which have any some sort of
interconnected nodes which are linked with extended spatially across the national boundaries. It
is also considered to be the integrated parts of the desperate national and subnational territories.
The interconnection of this framework is able to combine the insights from the global value
chain analysis, actor network theory and literature on varieties of capitalism (Athukorala and
Veeramani, 2019). The ways in which the global market for auto-mobile is connected to each

other helps the customers of different countries gain access to the cars from different
manufacturers. GPN provides this industry with a relational framework which aims to embrace
all the relevant actors in the production systems. With the help of this interconnection this
industry is able to provide the framework analytical platforms related to the different clustering
dynamics. It is also the factor which is helpful for the value chain to gain credits in economists.
This interconnection of this global business of car manufacturers have been able to impact the set
of the social construction of the locally integrated policies which bring growth to the economic
organization.
Operations: with the help of GPN interconnection the industry is able to provide
effective work as it can be easy for them to do operations in a very effective manner. By using
GPN the industry is able to embrace all the relevant factors in the process of systems (Coe and
Yeung, 2019). The industry is able to set raw materials, systems, production systems, storage
facilities and many more. The ways in which global business is interconnected to each other will
support the clients of various countries to experience the services provided by industry who is
operating business.
Transactions : the another major feature of GPN is transactions, the overall business
transaction can be effectively done with the help of this interconnection (Global production
network, 2022). By this network, business transactions are able to positively set the
manufacturing process. With the help of this interconnection, the industry is able to manage
global level operations which helps them to focus on operations management and transaction of
business together.
Products and services : due to increase demand for products and services in the market
are, this interconnection is able to focus on products and services which help to improve the
transportation services. By having this connection, the industry is able to positively impact the
set of values which brings economic growth at higher level. GPN provides support to products
and services related to car manufacturing.
Distributions : as increasing issues for managing global operations management faced
by the industries, with the help of GPN the industry is able to develop an understanding of key
drivers in global distributions from various perspectives. In the global production networks, the
GPN research is helpful to incorporate the state as an active agent.

Consumptions : by this GPN, the automotive manufacturers can emerge stronger from
the recent conflicts and increase their financial health with new risks profiles and novels supply
strategies for the consumptions. The GPN provides the ability to serve customers in a most
effective way for their needs beyond their geographic presence by having the capabilities (Lanza
and et.al., 2019). By having this GPN is the industry can help them to increase the production
flexibility, regionalized manufacturing, consumptions and risk management with appropriate
level to deal with uncertainty in the future which can arise from trade conflicts rising
transportations costs and borders closures.
The role of government in auto-mobile industry
As we all know that the government does not have any kind of role in the sales and
production of this industry. But they have major role in making legislations which is related to
auto mobile industry. The government has implemented few tax systems for the betterment of
society as well as auto mobile industry. The tax system in this industry allows for differing tax
rates as per the different circumstances (Miglani, 2019). Due to regulations made by government,
this industry is able to sought to shape the efficiency. With the help of this regulations the
industry is able to boost the costs of productions and limit the ways cars, vehicles and other
related this is sold. With the support of these regulations, the industry is able to limit the way
autos are being advertised in the market. Due to this the consumer is able to easily differentiate
one car from another with the help of this model and making of regulations.
Not only this, government always support manufacturing process and infrastructure
process of this industry which has positive impact on operations, distributions and consumptions.
The government has a vital role in enhancing and maintaining the infrastructure for utilities and
also improve transportation required by the auto mobile industry (Mathiyazhagan, Sengupta and
Poovazhagan, 2018). As the auto mobile industry is a highly valued added and technology
intensive industry in world, which provides growth and development in the economy, this
support of government has created job opportunities for people who wants to make career in this
auto mobile industry. In addition to this, the government also support Research and development
policies which helps them to upgrade technology and also develop vehicles related things such as
tools and equipment’s.
Regulations made by government has direct impact on how the manufacturing process of
car industry works, it directly impacts the way cars look, how their features are being developed,

how their firms are designed and how safely are their features (Cavazos, Rutherford and Berman,
2018). Rules and polices made by government on this industry has a significant effect on the
automotive business by increasing costs of products while also placing some limits on the cars
which are sold in the marketplace. However, the government does not much interfere in the
production process but their regulation is designed in such a manner that it may provide benefit
to consumer and protect the environment. by this they are able to maintain sustainable
environment for the safety of people. If the industry is not able to follow and does not focus on
these regulations made by government then they have to deal with some penalties and stiff fines
which might impact their reputation because of media presence in the world. Plus, as we all
know that car designs varied from year to year and depends on the technology upgraded in the
market, and the creativity of these car designs played a very important role in the sales appeal
(Lee and Mah, 2017). The consumers have to make differentiation while buying vehicles as these
designs also different from each other in terms of safety. The government has taken this into
consideration and make safety regulations for the betterment of people if not followed by
industry they have to deal with manufacturing and production related penalties. The government
have focused on the safety precautions such as compulsory airbags, seatbelts and window safety,
as many car designs started looking the same way they want so that automotive organisations
could more easily comply with these important and necessary requirements (Mathiyazhagan,
Sengupta and Poovazhagan, 2018). Also, the companies have focused on safety features fuel
efficiency requirements in order to increase fuel efficiency goals and has design limitations,
which has to perfectly fit into a specific area of the car.
Section B
Question 3 Ethical issues faced by international business
Answer a)
International business is mainly defined as the process of transacting the business from
one place to another. Transacting with operating the international business mainly helps in
achieving better revenue to the business and supports in expansion by reaching the wide target
market for operating the business. This mainly involved transacting the business between two or
more countries by transferring goods and services from country to another. Transacting the
business into global countries help in increasing and earning better profits for the company and
also aids in gaining better access to the potential talented employees for working with different

employees belonging from different countries (Ayuba and Aliyu, 2018). The main ethical issue
faced by the international business are the workplace diversity, corruption, employment
practices, human right violation, negative Working culture which are discussed as under:
Human rights concern: As by operating the business into the international country,
violating the human right practices as not giving equal opportunity for making and giving
opinions in taking the business decisions by the employees. Examples: the unequal pay to
employees working and operating the business and performing role at the same responsibility.
Not fairly compensating employees arises the ethical issue for operating the business into the
international markets. As the equal human right is the law which displays the ethnicity at the
workplace.
Employment practices: Various ethical issue related to the employment practices for
operating in the international markets as the unethical behaviour with the employees working
and operating in the company as for achieving the desired objectives practice related to the unfair
treating and giving unequal opportunities. Examples discriminating the employees in the
company as related to the different background and culture working in the company. Also,
harrasining employees by not giving the equal working opportunities arises the ethical issues for
operating the international business in the global countries (Boiral and et.al., 2019). Further,
paying unequal and minimal to employees for working at over time and giving extra efforts for
achieving the business objectives aids in arising the ethical issues for the employees.
Environmental pollution: operating business into the international countries the
environmental pollution is an issue as it aids in pollution the working surrounding (Fatehi and
Choi, 2019). As when the company operates at global level the inferior laws relating the
environment increases the pollution for operating the business into the global market with arises
the ethical issues for the business as not operating with concerning the environment and
protecting from the damages.
Toxic working culture: The toxic Woking culture as of operating the international
business. Individual belonging from different cultures and countries working in one company
various toxic and negative cultural practices arose the ethical issue for the business. For example:
manipulating and pressurizing the different cultural employees working in the company as by not
establishing the inclusive practices and environment for including the different background and
diversifier workforces Woking in the company this aids in arsing the ethical issues.

Corruption: This ethical issue aids in hindering the business relations between two or
more individual as for obtaining and gaining the personal benefits. The unethical practices as for
examples: bribing and corrupting with the international governmental authorities as for working
and achieving the best result and in the favour of the business. While operation and establishing
various stores for the company in the international market bribing the governmental authority as
for constructing all the work smoothly. Corrupting the international governments officials for
obtaining the financial and other benefits for the business aids in arsing the ethical issues. This
aids in hindering the business practices for achieving the best results and achievements for the
company .
Workplace diversity: This Ethical issue aids in comprising about the lack of acceptance
and recognition of employees for contributing the extra efforts for achieving the international
business objectives. Also, not recognize for fairly performance and working with handling all the
responsibilities in the company while working in the global country. Examples: paying rewards
differently to employees for contributing extra and Working overtime. This inequality arises the
ethical issues for operating the business into the international markets.
Setting unrealistic and conflicting goals: While operating the business into the
international markets. The company operating into various countries by setting the unrealistic
goals as by not defining all the standard and researching the latest trends and factors impacting
the company operations aids in arising the ethical issues. For example: setting conflicting goals
by operating into more than one country the aggressive leadership and goals aids in pressurising
employees for achievements and by failing to achieve these conflicting goals leading in reducing
the employees pays and more pressures for obtaining the desired results this arises the ethical
issues for operating the business into the international markets.
Thus, various ethical issues for operating the international business in global countries
impacts the business operations and results in hindering the business operations. Further more
company working in international countries impacts for operating business in dynamic market.
b) The causes of unethical behaviour by international managers
Answer b). The Unethical behaviour by the international mangers mainly defining about
the unethical practices as by forcing the employees for completing and performing the different
task in the company or risk setting goals as for increasing the sales of the company. With
performing this ethical behaviour by the manger results in reducing the company creditability,

trust, productivity in working. as various manager for operating the business aids in submitting
the false reports also aids in constructing the false expenses and stealing the company property
and reducing the revenues which results in hindering the process of achieving the business
objectives. The main issues raises due to unethical behaviour of the manager in the international
business are as follows:
Poor management : With performing unethical behaviour in the company by the
manager as of operating the international business aids in resulting in the poor management.
When the manger of the company is not aligning the gaol and not concentrating for achieving the
business objectives results in inducing employees for misusing the assigned role and
responsibilities. Example: with the unethical behaviour of the manager leads to the
misbehaviour by the employees as by arriving late at the office and taking longer time for
completing the assigned task aids in resulting in inefficient in working and achieving the goals of
the company.
Poor structural and strategy orientation : With various unethical practices by the
company manager for operating the international business into the global country leads in poor
structuring of the different task and assigning various roles for the different department for
achieving the objectives. Examples: As by lying the employees and not clearly defining the goals
for achieving the business target also abusing employees for not attaining and completing the
task on time aids in poor structuring and lacking the proper strategy orientation for the company.
Wrong practices: The unethical behaviour by the manager leads to the wrong practices
as for examples: by lying to employees and employees theft by manipulating for promoting and
providing the better position in the company as for aching the personal profits aids in resulting ad
hindering the international business operations and lack of employee retention arises.
Poor leadership : With the ethical behaviour of the manager arises conflicts between
employees and manger for working at the assigned role this creates the toxic working culture a
when employees are in satisfied and discriminated regarding age and their work resulting in
quitting the company.
Aids in setting bad examples: unethical behaviours by the manager aids in resulting in
setting the bad example because the employees in the company are motivated for working and
achieving the goals. Therefore, the leaders and manager are the role model for the employees as
employees are guided by the manager and leaders for working the particular way as for

achieving the best results (Ishak, Haron and Ismail, 2019). With the strong belief system of the
employees on the higher authority impacting the behaviour of employees and makes bad
influences for exhibiting and working in the company as for achieving the goals.
Misusing company time: The unethical behaviour of the international business manager
leads in misusing the company time by wasting its efforts. As when the international company
manager is not concentrating for achieving the best results for the company and concentrating on
the unethical practices aids in resulting in lacking the company objectives and achievements.
Also leads to incomplete vision and mission of the company. Example: as by misusing the
company time by false committing for establishing the objectives and not gaining the proper
goals for the company while operating the international business leads to the reducing the
revenues and profits by not Working efficiently and misusing the time (Semyonova and
Kudryavtseva, 2018). Thus, the unethical behaviour of the manger in operating the international
business Leads to resulting in various business and reduce the company profits by hindering in
achieving the gaols and objectives.

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Online
Global production network. 2022. [Online]. Available through: <
https://www.sciencedirect.com/science/article/abs/pii/S0007850619301659>