Just like other industries such as apparel, electronics and consumer goods, the automotive industry has accelerated foreign direct investment, cross-border trade and global manufacturing. The automotive industry has increased outsourcing and consolidated value chain activities into major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and foreign direct investment. With these increased supplier capabilities, large national suppliers have become global suppliers and now control multinational operations. This is due to their increased ability to provide goods and services to various leading companies around the world. The automotive industry has a distinct business structure. This allows him to exert a lot of pressure and power on extremely small businesses. Production in the automotive market is dominated by leading companies in Japan, the United States and Germany. It is without a doubt that the automotive industry has had massive effects on globalization. This article discusses the effect of the automotive industry on globalization and analyzes which part of the automotive industry has influenced globalization. How has the automotive industry affected globalization? The automotive industry has been on the global stage since its inception. The offshoring of vehicle production began with the mass production of the Henry Ford system, which entered the mass markets. Automobile companies in America led the way in globalization in the 1900s. Companies like General Motors are remembered for manufacturing plants outside of America a year after the company was founded. Since 1913, the automotive industry has undergone enormous changes. The automotive in......middle paper......Industry: motivations, methods and effects. Cambridge: International Motor Vehicle Program, Massachusetts Institute of Technology, Cambridge, MA. 2008.Print.Maxcy, George. The multinational automotive industry. New York: St. Martin's Press. 2001. PrintStorione, Timothy. & Memedovic, Olga. Globalization of the automotive industry: main characteristics and trends. International Journal of Technology Learning, Innovation and Development, 2009. 2, (1) http://www .cggc.duke.edu/pdfs/IJTLID_Globalizationofautoindustry_Sturgeon_2009.pdf Ulrike, Schade. 2009. Globalization and reorganization of the Japanese automotive industry. Journal of Automotive Technology and Management. http://irps.ucsd.edu/assets/033/10612.pdf Yang, Xiaohua. Globalization of the automotive industry: United States, Japan and the People's Republic of China. Westport, CT: Greenwood Publishing Group 1995.