The Institutional Structure of International Business: Analysis

This report examines the institutional structure of international business, applying the Global Value Chain (GVC) theory to the automobile industry. The analysis covers key aspects such as input-output structures, geographic scope, governance, and institutional context within the automotive sector. It identifies major players like Toyota, Volkswagen, and Hyundai and explores their global production and market strategies. The report delves into the industry's historical trends, including its evolution from a national to a global industry, and the influence of government and civil society regulations. The GVC framework is used to assess the industry's primary and support activities, including inbound and outbound logistics, operations, marketing, sales, and customer service. Furthermore, the report highlights the importance of technology, human resources, and supplier management in the automotive GVC. It also discusses the governance structures within the industry, including market, modular, relational, captive, and hierarchical governance, and how they shape the industry's dynamics and competitive landscape. Finally, the report assesses the strengths and limitations of the GVC theory in understanding the automobile industry's complexities, trends, and future directions.