Final answer:
The global car industry faces issues such as increased international competition and the impact of globalization, which has reduced market concentration when viewed globally. The industry is considered global due to international trade, production scale, and diverse competition, but regional differences in culture, politics, and economics impact its global uniformity.
Step-by-step explanation:
Issues in the Global Car Industry
Some of the current issues in the global car industry that have altered the competitive landscape include the rise of international competition and globalization. A few decades back, the U.S. auto market was predominantly controlled by General Motors, Ford, and Chrysler, but now they face fierce competition from global brands such as Toyota, Honda, Nissan, Volkswagen, and others. In the context of globalization, measures of market concentration such as the Herfindahl-Hirschman Index (HHI) are lower globally than nationally, indicating a less concentrated and more competitive market.
Is the Car Industry Global?
The car industry can be considered a global industry due to factors like international trade, large-scale production across countries, and a wide array of global competitors that stimulate innovation and consumer choice. However, factors that may counter the notion include varying cultural, political, and economic conditions that influence manufacturing and sales in different regions. For example, while Detroit once had geographic advantages for auto manufacturing in the United States, current global operations of carmakers reflect a shift in industry distribution.