The Effects of Globalisation and Internationalisation on the German Automotive Industry

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The phenomenon of globalization is the process of integration and interaction between nations on a global scale. The process of globalization is mainly driven by the integration and cooperation of multiple governments and economies. This global cooperation influences the development of political and financial systems, perception of multiple cultures and prosperity and sustainability of the environments, which plays a major role in peoples’ living standards and their way of life. As time passes and new discoveries are made, globalization has become one of the most important forces currently shaping the world’s economies and the way multiple nations interact and communicate. One of the main goals of globalization is for organizations to achieve lower production and operating costs to gain a greater amount of products and services and thus consumers. Due to technological advancements, globalization has entered a rapid state of growth, such that now all five continents are affected and interacting. The automobile is one of the most important inventions in human history; it created a whole new way for people to carry out tasks and to connect with many others around them. Since the automobile industry has grown and continues to shape the world of transport, the German auto industry is now one of the largest automobile industries in the world. Germany ranked third in country car production with Japan in second and China in first from 2009-2013 (International Organization of Motor Vehicle Manufactures). The German auto sector accounted for 20% of Germany’s total industrial revenue in 2011 and produced upwards of 12.9 million vehicles globally equating to 17% of the worldwide production (Germany Trade and Invest, 2013). Germanys car industry has an extensive history dating right back to the end of the 19th century when Carl Benz unveiled the first concept of the

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