Global and External Influences on the car market

Question 1

Labour costs

Answer 1

Different countries have different labour costs
Choosing a country with low labour costs gives businesses a cost advantage
OR they choose a country in a trading block to avoid tariffs and quotas

Question 2

Protectionism

Answer 2

Trade restrictions for decreasing the amount of trading between countries

Question 3

Trading blocs

Answer 3

Opposite goal of protectionism
= Promotes trade
Removes tariffs and quotas so importing cars is possible at no extra costs

Question 4

Global competitiveness

Answer 4

Asian brands have entered the market
Eg China

Question 5

% of house holds owning a car in 2022

Answer 5

China: 22.2%
India: 5.9%
USA: 88.90%

Question 6

Annual global car sales in 2022

Answer 6

China: 23.24 million
India: 3.79 million
USA: 7.59 million

Question 7

Adapting for different markets

Answer 7

GEOCENTRIC APPROACH
Diff countries prefer different size cars Eg because of the size of the roads
Left/right hand side drivers

Question 8

What can adapting to different markets cause?

Answer 8

Increased unit costs
Due to having to abide by different legislation, costs will increase