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Global Perspectives in Automotive Industry and Diplomatic Relations

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Global Perspectives in Automotive Industry and Diplomatic Relations

Case 2: Globalization of the Automotive Industry

One of the most fascinating interrelations between market transformation and

international positioning is globalization in the automotive industry, especially between

American and Japanese producers. For U.S. firms to cope, domestic demand is going down, as is

fierce competition emanating from Japanese cars efficient in fuel economy, and cutting-edge

technologies are already on the way (Petti et al., 2018). It includes not only macroeconomic

management but also market penetration and localization. This will provide U.S. corporations

with cost advantages and access to the Latin American market. However, this comes with issues

such as the opposition of domestic labor and cross-border logistical complications (Pavlínek,

2022). On their part, Japanese corporations attempt to avoid barriers to trade and turn the local

production process subordinated to U.S. consumers' tastes with appropriate regard for brand

name and quality in different places of manufacture. This case shows that maintaining a brand,

local market adaptation, and high efficiency of global operations require a balance in the

automotive industry.

Case 3: The Shah of Iran and Diplomatic Hostage Crisis

The U.S. decision to admit the deposed Shah in 1979 as a hostage diplomat symbolizes

divergent perceptions rooted in historical and cultural contexts between the U.S. and Iran. The

U.S., the Carter presidency, and Kissinger as Secretary of State saw the admission. This move

appeared consistent with the U.S. foreign policy of supporting allies during the Cold War but

perhaps underestimated the depth of anti-Shah sentiment in Iran, seeing him as a representation

of despotism and Western domination (Ng, 2022). On the contrary, for Iranians being deeply
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affected by the Islamic revolution, this act represented U.S. support of an oppressive regime,

contradicting their intention to establish a new order based on Islamic principles. The hostage

crisis was a reflection of Iranian resentment and a call for respect for their sovereignty (Barker,

2023). The writing perspective in the context of Iran should be objective and compassionate,

taking into account historical and cultural events that influenced their perception, which stands in

stark contrast to Western perceptions. This answer involves acknowledging the strong effects of

external intervention in Iran and the motivational factors that influenced their behavior during

the crisis.
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References

Barker, A. J. (2023). Inside Iran Before and During the 1979 Hostage Crisis. In US Foreign

Service Women in the Middle East and Islamic North Africa, 1945–2001 (pp. 99-128).

Cham: Springer Nature Switzerland.

Ng, J. (2022). Exporting Imperialism: Arms, Iran, and the Military-Industrial Complex, 1969–

1979. Diplomatic History, 46(2), 320-348.

Pavlínek, P. (2022). Relative positions of countries in the core-periphery structure of the

European automotive industry. European Urban and Regional Studies, 29(1), 59-84.

Petti, C., Spigarelli, F., Lv, P., & Biggeri, M. (2021). Globalization and innovation with Chinese

characteristics: the case of the automotive industry. International Journal of Emerging

Markets, 16(2), 303-322.