Case Name :      Globalization Threatens Canada’s Auto Industry: Implications for the Economy and Society

Authors :           David W. Conklin, Danielle Cadieux

Source :             Ivey Publishing

Case ID :            906M08

Discipline :        General Management

Case Length :    12 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

For many decades, the automobile industry had played a major role in Canada’s economy. A large portion of Canadian jobs depended on the auto industry, both directly and indirectly. However, by 2005, Canada faced serious globalization threats. Analysts were stating that in the future the number of automobile-related jobs in Canada would depend upon the international competitiveness of Canadian plants. To continue to increase wages would raise Canadian production costs so far above the levels in Mexico, China and other emerging nations, that the assemblers would shift production to low-cost jurisdictions. Meanwhile, the Big Three were losing market share to their non-union competitors, especially Toyota and Honda.