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"To What Extent was the US car industry harmed by imports of foreign cars or by foreign car makers setting up production in the US"
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In the first half of the growth of the automobile industry, USA was one of the front runners due to the economic development of the country. The economic development in the country meant that the demand was prevalent. The engineering developed due to the growth of technology. There were no direct competitors for the US firms. However, the dominance of the US was not everlasting. With the potential of the industry on the rise, various other manufacturers from the other countries began to enter the field. The car manufacturers from Germany and Belgium began to develop with the help of modern engineering technologies. The car manufacturers from the other countries viewed the US market as one of the most inviting and potential markets of the world. They were helped by the fact that the US economy promoted free competition among the firms. This meant that the companies were free to ply their trade in the USA. The US market soon became flooded with the imported cars. Seeing the potential of the market some of the companies began to set up in operations in the US. In the modern context, the Japanese firms have made a big progress in the industry. The Japanese firms have been technologically advanced and that has prompted the companies to use the most modern technologies. They have been responsible for the introduction of the most modern cars in the market. Most of the Japanese companies have set up operations in the US and the market there has been the main focus for the Japanese companies. The Japanese cars are one of the most dominating in the US market. The US car manufacturers faced a tough competition from the car manufacturers of the other countries. Their condition has worsened due to the global economic downturn in the economy. There is lesser demand for the cars in the US market. The combination of these factors has been detrimental to the interests of the US car manufacturers. (Covarrubias, n.d.). The ...
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