cause and effect: CEO of a major U.S. automotive manufacturer

Running head: CAUSE AND EFFECT Cause and effect Name Institution Course Lecturer Date Determining Causes and Effects Thesis Statement Many automotive manufacturers prefer to import most of their materials from international markets rather than using the local materials. The reason behind this decision is what is not well known; but what is known is that manufacturers are influenced by some causes to engage in foreign importation which of course has some effects. Introduction Cause and effect aspect determine the action one takes in embarking on an issue. There is a reason for doing something which is accompanied with some effects that is either positive or negative. The decision to import or use local materials is determined by the causes and effects related to it. This work explains the causes and effects of an automotive manufacturer importing from the international markets. It specifies the effects this decision has to both the people and the economy. Major Cause The need to produce high quality and unique automotives is the major cause for importing from foreign markets. With high competition in the automotive industry, manufactures use all means to ensure that they produce the best automotive products in the market. When the local materials cannot allow them to produce high quality products, the next alternative is importing from international markets where they are readily available (Hinkelman, 2004). A Leading Second Cause The need to meet the demand for export products causes the manufacturer to import automotive materials from international market. With increasing demand for automotive export products, manufacturers are forced to import raw materials to ensure there is adequate supply to meet the existing demand. It is the demand for specific product or service that influences the manufacturer to produce it. Therefore, the manufacturer will commit to import the material to produce the automotive products demanded for (Hinkelman, 2004). Other Contributing Causes Cost effective is another cause for importing from foreign. Automotive material is cheap in international markets like Japan. It will be cheap even after deducting the import taxes for the manufacturer to use foreign materials rather than using local materials to produce the automotive products. It is difficult for any business to survive in the long run if it is not cost effective; this is because it will be running in losses. To avoid this from happening it is best for the manufacture to imports materials that are cost effective. The need to make high profits will cause foreign importation of automotive materials. People enter into business with the aim of making profits, so they adopt strategies that will enable them to make profits. Importing raw materials is one of the strategies used by manufactures to increase their profits. The need to dominate share for automotive products in home market will cause the automotive manufacturer to look for materials abroad. With exclusive products produced from foreign materials, the manufacturer will be able to dominate the market share in the home market. Large market share enables the manufacturer to gain competit...