An Assignment on Impact of Globalisation on Automobile Industry

THE DEFINITION The International Monetary Fund defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. Meanwhile, The International Forum on Globalization defines it as the present worldwide drive toward a globalized economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments. While notable critical theorists, such as Immanuel Wallerstein, emphasize that globalization cannot be understood separately from the historical development of the capitalist world-system the different definitions highlight the ensuing debate of the roles and relationships of government, corporations, and the individual in maximizing social welfare within the globalization paradigms. Nonetheless, it is clear that globalization has economic, political, cultural, and technological aspects that may be closely intertwined. Given that these aspects are key to an individual's quality of life, the social benefits and costs brought upon them by globalization generate strong debate.
It is easy to perceive the increase in the flow of trade, especially intra-firm transactions by multinational corporations, and the even faster growth of global capital markets that are obvious signs of globalization. The globalization of production is the most visible evidence that can be detected from the growth of manufacturing FDI, and even more significant is the expansion of the international capital market. When focusing on global economy, globalization has two components: finance and production. Globalization of these factors appears in the form of the increased international mobility of capital and the growing incidence of mergers and acquisitions and strategic alliances. And for both finance and production,