The Inclination of businesses, technology or philosophy to spread worldwide is known as Globalization. The word “globality” is used to define the global economy which is classified as a mutually dependent marketplace unaffected by time zones or even national limits (Rouse, 2007).Globalization and the increase of technological knowledge has led to an era of evolution in geopolitics;people from different walks of life are given the chance to work together.However, there is an uncertainty that two civilizations with two points of view the world will surface. One having the capability to develop and exploit knowledge, while the other being on the receiving end of knowledge and unable to reshape it. (Shuja, 2001).
Globalization has changed the world in many ways, Firstly by accelerating interrelationship between nations in terms of the economy and the society in a way that events in a country directly impact unto others. Next, the intensification of interconnectedness in terms of flows of trade, capital and the community around the world (Rosenau, 1990).Lastly, the advancement of the automobile industry has aided the process of acceleration of international development and interactions.
The automobile industry in Japan has gone through globalization in countless ways. Japan’s automobile industry first faced globalization in the mid-90s when they lost their low cost-country advantage, causing them to produce parts overseas to reduce cost. During 1994 to 2006 the ratio of investments in production houses abroad doubled while their manufacturing of parts overseas has increased about 13%. At the same time, the manufactured products imported have tripled since the 1980s until the late 2000s (Schaede, 2009).The outcome however, most manufacturing houses require a large amount of low-skilled or even unskilled workers causing a rise in cheap labour. In most advanced nations, there is a distinct gap between the pay of the skilled and also the unskilled workers. In other words, the rich are getting richer and the poor are getting poorer. (Wood, 1998).These low-skilled workers are poorly paid, forced to work long hours and are treated as passive objects upon supervisors unilaterally force their desire unto these workers to meet the goals of the company (Babson, 1995).
The Japanese automobile Industry grew rapidly by introducing the “lean production system” or some might know it as Toyotaism today. The systems main objective is to eliminate factors such as overburdens, inconsistency and also to remove waste. Furthermore, the Japanese automobile manufactures also adopted the “Just in time” strategy which helps to increase the business return by reducing carrying cost (Schonberger, 1982) and also to correspond to the production rate to fit in a global scale.
One of the many ways that the Japanese automobile industry is globalized is by approaching the idea of “think global act local” or in other words glocalization, where the main purpose is to cater their...