Effect of Globalization on Car Industry Business Operations

Effect of the globalization on the Operation of Car Industry Business
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Effect of the globalization on the Operation of Car Industry Business
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Effect of the globalization on the Operation of Car Industry Business
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Table of Contents
Description of Research...................................................................................................................3
Significance of Research.................................................................................................................4
Literature Review............................................................................................................................5
Definitions....................................................................................................................................5
Forces of globalization.................................................................................................................8
Expansion of Containers Shipments.........................................................................................8
Technological change...............................................................................................................9
Economies of scales.................................................................................................................9
The difference in tax systems...................................................................................................9
Theoretical background................................................................................................................9
Car Industry performance and globalization..............................................................................10
Theoretical framework and hypothesis......................................................................................11
Global Marketplace Opportunities and Car Industry Operations..............................................12
Business expansion through a technological revolution........................................................13
Car quality and cheaper prices...............................................................................................13
Formation of new branches....................................................................................................14

Effect of the globalization on the Operation of Car Industry Business
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Free capital movement and goods transportation...................................................................15
International Trade and Profit................................................................................................16
Global Marketplace threats and business Operations................................................................16
Global market insecurity............................................................................................................17
Proposed Research Methodology..................................................................................................18
Introduction................................................................................................................................18
Exploratory Research design.....................................................................................................18
Target population.......................................................................................................................19
Sampling and Sampling design..................................................................................................19
Data collection...........................................................................................................................20
Data Collection Techniques.......................................................................................................20
Questionnaire..........................................................................................................................20
Ethical issues..............................................................................................................................21
Data analysis..............................................................................................................................21
Evaluation of Research Methodologies.........................................................................................22
Conclusions....................................................................................................................................22
List of References..........................................................................................................................24

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Description of Research
The business environmental operations tend to be complex, dynamic that has numerous impacts
on the organization. The business environ is broad and entails human, financial and physical
resources that determine the strength and weakens of the business. In some cases, the
environment tends to change due to many reasons, such as globalization. Over the past few
decades, globalization on the business performance has received global attention. It is estimated
that the economic contribution from the business operations covers about 65% of the GDP of
most of the countries in the world. For example, in East Asia, business organizations form the
significant players of the exporting industry thus accounts for about 45% (da Rosa, de Mello &
de Castro, 2018, p.76). Numerous authors view globalization as an opening of the international
borders that allow free movement of foreign investments, information, and technology, thus
facilitating the development of the country. According to Berge, (2012,p.5), the inter-linkage
between the nations occasioned by the high speed of social, economic, technological and
political is more complex as well as multifaceted phenomena. The paper thus aims at exploring
the impact of globalization on the car industry; with emphasis on the performance, quality and
quality, and revenue collection.
Globalization was initially regarded as approaches to the big business entities, however, in the
current world; both the small and medium business organizations get affected by the effects of
globalization. Certainly, globalization affects business performance in both negative and positive
ways, thus it is instrumental for small business to understand the concept of globalization to
enable them to remain relevant in the current competitive business world (Saeed, Zulfiqar &
Rathore, 2015, p.298). This paper thus explores the impact of globalization on business

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performance in various countries. The study aims at defining the term globalization with respect
to the business aspects, and explore the impacts of the globalization on the business activity; thus
on the performance of the business.
Significance of Research
First and foremost the study is beneficial to me as an individual as it enhances my understanding
on the globalization and its influence on both the local and universal business that will be
essential to both the class work and future professional career. Additionally, at the end of the
paper, I will be able to promote my research work performed. Secondly, the results of the paper
will significantly benefit the academia and researchers that are in the field of globalization and
international business since the study will add value to the existing international business and
globalization information. Thirdly, the information will be beneficial to the Car Industry and
other business organizations that are thinking of going global, since they will have extensive
information to help them determine the best decisions to make by evaluating past information.
Literature Review
The second chapter presents the literature review of globalization and business performance from
the past studies. The study entails definitions, theoretical background, and theoretical framework
and research gaps.
Definitions
It is observable globalization has numerous definitions depending on the context used. A good
number of globalization’s definitions are grounded on economic scopes similar to one accepted

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by the World Economic Forum. According to W .E. F, Globalization refers to the digital
revolution and economic development that are supported by the enhancement of communications
and transportation infrastructure, and elimination of capita transfer barriers (da Silva, Santos &
de Morales, 2017, p.77). On the same note, IMF refers to globalization as the interdependence of
the country’s economic status that results from the free movement of money across the borders.
According to globalization refers to the process of enhancing the inter-connection of social and
cultural aspects, gaining of the political interdependence, growth of economic status, integration
of the financial and market (Aman, 2018, p.568). For the purpose of the study, globalization thus
refers to the enhancement of the market and trade beyond the borders of a nation.
Small and medium-size business organizations refer to the organizations that are operating
within the boundaries of the country. The Car Industry plays weighty roles in increasing the
country's economy through asset creation, job opportunity provision, and innovation input. In
most of the countries, the large percentage of GDP is collected from the Car Industry, since they
are the most populated than the multinational business organizations. Jürges, Sahi, Rios, Reich,
Bhamra, Howard, Slater & Nick(2018,p.5) denotes that Car Industry do not only positively
impact the economic status of the country but also eliminate monopoly by the MNEs through
entry into the market, thus relieving them the power to determine prices of the different product.
A conceptual model of globalization on Car Industry
The conceptual model that describes the effect of globalization on the quality of life (QOL); the
model offers relevant understand the influence of globalization on the industry since it denotes