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International Relation Assignment - Global Economy

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Added on  2020-05-08

International Relation Assignment - Global Economy

   Added on 2020-05-08

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Running head: INTERNATIONAL RELATION & GLOBAL ECONOMY International relation & global economyName of the StudentName of the UniversityAuthor note
International Relation Assignment - Global Economy_1
1INTERNATIONAL RELATION & GLOBAL ECONOMY Table of ContentsIntroduction................................................................................................................................1Discussion..................................................................................................................................1Conclusion..................................................................................................................................5References..................................................................................................................................6
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2INTERNATIONAL RELATION & GLOBAL ECONOMY Introduction The automobile industry has been experiencing a continuous fall in its sale andgrowth since the time being. However, in 1980s it was seen that the automobile industry ofUnited States has started experiencing an increase in its sale and a tough competition fromthe import of foreign automobiles. This has put pressure on the industry to take up moreinvestment and capital expenditure. This changing nature of automobile industry in UnitedStates had a detrimental impact and a great pressure on the economy as a whole (Law, 2017).The essay discusses about the imposition of import quota on the automobile products comingin the United States market from other foreign countries. Further it analyses the impact ofsuch policy on the home market as well a on the non-US manufacturers. A critical analysis ofthe impact of quota restriction of 1980 on the import of foreign automobile in the US markethas been discussed in the paper.Discussion The condition of the United States automobile industry was worsening from 1979 dueto various reasons, with a reduction in sale of domestic automobiles to negative profits. Theindustry has been facing a lot of problem in the year 1979 to 1980. The rate of layoffs ofdomestic workers was also increasing at a fast rate in the industry. However, it was noticedthat these issues were mainly seen in the domestic market with major structural changes inthe automobile sector. On the other hand, it was noticed that the foreign automobilemanufacturers were growing their business in the US market. The sales and profits of foreignmanufacturers increased at a very fast rate during the year 1979 to 1980. The sales from theautomobile entering the US market from the foreign country especially Japan had increasedinconsiderably. It was evident that sale of foreign automobile in the US economy hadrecorded 21 percent of the total automobile sale in the economy (Nanto & Elwel, 1980). This
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