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Understanding the Global Economy: Case Study in Global Assembly Lines
You are going to use parts of two different online case studies that I helped create about India and Japan
in order for you to develop a better understanding about how the global economy functions. If you type
your answers in this document use italics. When finished print this case study and place it in your
notebook on the designated page from table of contents.
Part 1: Global Economy: India
Answer the following questions while completing the module located at
http://cgge.aag.org/GlobalEconomy1e/CaseStudy5_Bangalore_Aug12/CaseStudy5_Bangalore_Aug12.html
Slide 1: India
How did you do at identifying streetscape elements in the video?
How is the content of the video different than the static photos above?
What local and global factors influenced the creation of this streetscape?
Where do you think the vehicles in the video are produced?
Slide 2
Explain the concept of “Factors of Production”
Why do car manufacturers often seek agglomeration economies? Explain
If cars are assembled in India using steel from China, tires from Japan, engines from Germany, airbags
from Utah (US) and sold in India this process is called?
Slide 3
Why are different elements of the car commodity chain located where they are?
Explain the concept of “New International Division of Labor” related to manufacturing.
Explain “Foreign Direct investment” and give an example related to the auto industry.
Explain this statement and give details to support: “While Volkswagon is headquartered in Germany the
cars may or may not be assembled in Germany but more likely in other countries”
Slide 4
What is neoliberal economic development?
Explain in your own words how India applied Neoliberal Development economic policies in 1991.
Provide examples of how it enabled foreign companies to enter India and Indian companies to become
more global.
Which sectors of India's economy benefited from the neoliberalism policies?
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What are some of the criticisms of neoliberal policy in India?
List actions taken by a country to attract companies to locate within their company’s production facilities
inside of their borders.
Slide 5
By examining the map of “India Car Production” you see that automotive plants are clustered in three
regions of India. This clustering is called?
As Tata's share of the Indian market grows the company will be faced with decisions on where to build new assembly
plants for its Nano production in India. Consider these questions:
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What factors should Tata consider in the location of a new Nano assembly facility?
How useful would highway maps, population maps or income maps be in your analysis? Are there
other maps or factors you could use?
Tata built a new Nano facility that began production in 2010. Using the linked map of Tata facilities
attempt to identify the facility that produces Nano's and why the company chose the specific
location. Use the link interactive map to read about and zoom in or out to analyze the locations of
the facilities. Use this interactive google map.
Part 2: Global Economy: Japan
We will now transition to another global economy case study about Japan to help you better understand
supply chains:
http://cgge.aag.org/GlobalEconomy1e/CaseStudy6_Japan_Feb13/CaseStudy6_Japan_Feb13.html
Slide 1:
Describe the different elements of supply chains and what name are they also called?
Slide 2: Car Manufacturing Japan
Explain why Japanese car makers agglomerate around Toyota City and Nagoyo.
Why is the automobile industry so important for a countries economy?
Why do many countries or regions want to develop a motor vehicle industry or compete for the
construction of new assembly plants?
Slide 3: Denso-Auto Parts Supplier
Using the maps in case-study carefully examine Denso's operations at different geographical scales.
1. The case of Toyota shows geographical concentrations of the industry in Japan and specifically, around
Nagoya. From either your research or from personal observations, identify reasons why Toyota is so important
to the city of Nagoya.
2. What do these maps suggest about global manufacturing patterns?
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3. Why does Denso have factories in so many countries?
Slide 4: McDonalds Supply Chains - Japan
Using the maps and links on page answer the following questions.
1. Why doesn't McDonald's buy most of its food from Japanese farmers? Keep in mind land-use
patterns in Japan and the cost of land. Where do you think McDonalds in the US get their food?
2. Why do specific products come from the countries that they do?
3. How could the 2012 drought across much of the USA affect egg prices in Japan? How might this
have influenced beef prices in Australia?
4. What are the differences between the supply chain for McDonald's products and the automotive
industry?
5. What types of products have a supply chain that is more complicated than McDonald's but
simpler than the automotive industry?
6. Compare the natural hazards that could impact a McDonald's supply chain and an automobile
industry. Are any of the hazards different? Explain the differences.
Slide 5: Dreamliner Boeing 787
The supply chain for the 787 extends to all corners of the world. Are there any potential weaknesses in
such a supply chain?
Big idea: Why are global supply chains important to local, regional, and national economies? Discuss the
impacts of global supply chains for each scale. Use page 8 of case-study to help you with this.
Hopefully you now have a better understanding of how the global economy functions related to
manufacturing.
If you type your answers in this document use italics. When finished print this case study and place it in
your notebook on the designated page from table of contents.