ECONOMICAL FACTORS

Economy of the whole world is affecting by the current downfall in US economy because all the companies are somewhat involved with America so after American economy goes down the condition of whole world is depressed.

The sale figures of US and Germany are going down because of Inflation and stagnant income level at the same time. Rising imported car sales in the western countries manufactured by India and china is a threat for of U.S. automakers that is the reason why Toyota took over GM as the largest car seller because the way Japanese has built there economy it has become impossible to beat them.

Apart of Japan the economy of China is growing faster then Europe. The reason for China’s strong economy is the Subsidiaries which they are giving to their producers so that they are able to manufacture same product in all quality that is required by the buyer that is the way government tries to ensure the local manufacture’s profit from the foreign companies. China is basically competing on the low labor cost and increasing product quality which is now days become major issue. after china and Japan India ha also emerged as a leading economy in the regions because of that Indian economy is currently experiencing a boom in demand for all type of vehicles they are controlling there economy also by giving subsidiaries to producer so that they can give maximum output for example recently when there was an increase in patrol prices the India government doesn’t let it effect to the manufacturer.