Filtering by
- All Subjects: Automotive
- Creators: Thunderbird School of Global Management
Abstract<br/>Foreign Direct Investment has been pursued to economically integrate countries and to increase economic development. This has been accomplished partly through the WTO and Free Trade Agreements (FTAs), which have spurred foreign direct investment (FDI) by removing barriers to trade tariff and nontariff. In addition, they also created a framework and legal guidelines and regulations for investment and trade. Research suggests that this is the case when looking at country level data before and after FTAs go into effect. Although the existing literature offers important insights a weakness is it does not often look at the relationship between FTAs and FDI by analyzing firm level data. This is an important relationship to be studied as, beyond governments multinational companies (MNCs) are one of few key actors that can benefit the most and have the capabilities to take advantage of these FTAs. Therefore, studying the relationship between MNCs and their investments both before and after an FTA is signed is important to see if FDI would change in response to Free Trade Agreements and have an impact at the MNC level deployment of FDI. This would be significant to see if the current steady for attracting FDI is working. This is also important as FDI helps countries develop. Therefore, it can be seen as an exceptional contribution to the overall research on the subject. In this paper I will explore how companies have reacted to the formation of FTAs as well as the distinct effects of North-South South-South and North-North Agreements on firm’s investment strategies, using firm level data and drawing on interviews with multiple trade officials.
We cannot ignore factors of religion, politics, and culture. There is a rise in political populism: Donald Trump’s “Make America Great Again” campaign, Brexit, a rise in Russian and Chinese nationalism, just to name a few. New global players want to establish themselves as leaders, through technology and territorial growth. The purpose of my research is to analyze China’s growth in the automotive sector, identify trade issues with respect to this industry between the United States and China, and to encourage others to re-evaluate our position in a global, interconnected economy. A global economy that is too dependent on a single, state-funded production hub is a vulnerable one. The main issues are in China’s unfair trade practices, including currency manipulation, Chinese import dumping, poor working conditions, safety standards violations, and nationalized or government owned businesses.
This paper uses various studies and my own personal study from my summer internship with Ford Motor Company to determine the biggest consumer fears, challenging them and how automotive companies can combat them. In my opinion, the biggest consumer fears for electric vehicles are range anxiety, lack of a charging network, high initial purchase prices, battery replacement costs and lack of appealing options. Consumers who are not interested in EVs, are interested or just looking have fears that can come from opinions or others opinions. These fears can easily change through factual points.
I have included numerous studies that combat these fears and show the truth of each category. In each category I have used studies that point out reasons why these fears are nothing to worry about. Consumers need to learn these fears can be easily changed and that is what this section aims to do.
Automotive companies will have to play a large part in this educational piece. My paper outlines what they need to do in order to succeed in the future. A major part will be dealer engagement. Dealerships represent the face of the company and if they are unwilling or cannot sell EVs, then electric vehicles will not succeed.
Finally, I provide my personal thoughts on the future of the electric vehicle market and what is holding high adoption rates of EVs back.