Nevertheless there are both positive and negative impacts that an economy derives out of facilitating the global manufacturing by transnational and multinational companies. The fact still remains that any economy cannot do away with either domestic or global manufacturing activities just to protect its environmental conditions. Actually there is bound to be an increasing trend in such activities due to the enlargement of the population and the economy as well. In the background of these factors this study has analysed the impact of CO2 which is a major element in the determination of the environmental impact on global manufacturing by using ‘Vensim’ – a system dynamic model with appropriate simulations. The study has also used software ‘EIO-LCA’ and ‘SimaPro’ for estimating the CO2 emission for the lifecycle of a car and a mobile phone to emphasise the aim of this project. The operations of global manufacturers Toyota, Volkswagen and Nokia in the country of China are considered as case studies. The study concludes that there can be no effective balance between the positive and negative impacts of global manufacturing on the environment of the host country as the CO2 emissions far too outweighs the positive impacts.
Even though there are several greenhouse gases that cause the global warming in their respective proportions, the study had taken the emission of Carbon dioxide (CO2) for analysis since CO2 constitutes the major contributor to the environmental hazards. The case studies coupled with the simulation model demonstrate that the quantum of CO2 emissions from the global manufacturing more than outweighs the economic advantages resulting from such operations in the host countries. But it is evident that the manufacturing activities would continue to grow in magnitude because of the increased expectations of the emerging economies to grow in a rapid pace. This implies the production of more CO2 and more adverse impact not only