Essay About Globalization Strategy And World Economy

Globalization Strategy Of Hyundai
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The current issue in the world economy is
characterized by globalization. Corporations have
built up a world-wide network economy by
promoting production and trade. An important
cause for the globalizing trend of the world
economy lies in relocation of production sites and
management strategies of business. Firms need not
only partnership with foreign companies in the
form of direct investment and joint ventures, but
they need also to develop cross-border buyersupplier
relations. These trends also provide
opportunities for the sharing of risks and costs in
R&D and production. Globalization is driven by
strategic alliances that reflect a shift of company
strategies.
Globalization is an increasingly important
aspect of the automobile industry. In the past
decades, the automobile industry has been one of
the mains driving forces in globalization. The
pattern of globalization followed by the major car
makers can so far be split into three stages. The
first stage is export. At this stage the goal is to
create a car that fits into a worldwide car category.
The second stage of globalization comes after the
expansion of export. This is the setting up of
transplant in major market regions. The last stage
of globalization is complete localization of
transplants on one hand and the establishment of a
global business network on another hand.
In the following, I would like to first of all
investigate specific firm organization and interfirm
market relations to which the globalization
strategies of Hyundai must adjust. Then, I will
explore the transition of globalization strategy from
transplants in the core market to set-up the KD
production site in periphery regions from 1985
through 1995. There was a clear change in
Hyundais globalization strategy at the end of the
1990s that has been primarily built by Global Top-