NUMMI CASE STUDY ANLAYSIS

1.<Tab/>Why has the world auto industry become more global? q<Tab/>With the oil prices rising in 1973 and worldwide recession, car manufacturers all over the world rushed to "downsize" their models and make them more fuel efficient. q<Tab/> the 1980's promised the introduction of a host of new technologies into passenger cars- i.e newly designed engines, sophisticated electronic controls, increased …

…amp;gt;No restrictions were placed as to how GM or Toyota could price and market any vehicles purchased from the joint venture. The transfer price for which NUMMI would sell to GM was a subject for negotiations. v<Tab/>The agreement explicitly stated that the joint venture did not establish any special relationship between the parent companies who "continue to be competitors in the United States and throughout the world".