Purchase Solution

International Business: Hyundai in Alabama

Not what you're looking for?

Ask Custom Question

Korean automaker Hyundai decided to build a new automobile assembly plant in Alabama. What factors do you think Hyundai considered in selecting Alabama as the site for the factory? Who benefits and who loses from the new plant in Alabama?

Purchase this Solution

Solution Summary

This solution takes a look at the factors that motivated Hyundai to invest in a plant in Alabama, USA. The article looks at the benefits and also the downside of the new Hyundai plant in Alabama.

Solution Preview

Based on research, it seems that the most important factors that tilted the decision in favour of a plant in Alabama, USA, are as follows:

1. Proximity to the market - This seems to be one of the most important factors. With American cars being large, expensive and fuel efficient, there was a latent demand for more compact, fuel efficient cars, especially with rising fuel prices and economic recession. [ As of the end of 2013 the HMMA plant is running in excess of its 350,000 listed capacity due to the high demand for Hyundai automobiles in the US market.]

2. US standards for cars - US has its own standards for automobiles, which are inconsistent with standards in Korea and the rest of the world. There are safety standards under the Motor Vehicle Safety Act of 1966, revised under the Imported Vehicle Safety Compliance Act of 1988; Bumper standards under the Motor Vehicle Information and Cost Savings Act of 1972, which became effective in 1978. Air pollution control standards under the ...

Solution provided by:
Education
  • BPharm, Mumbai ,India
  • MMS, Mumbai, India
  • PhD, Madras, India
Recent Feedback
  • "Thank you so much"
  • "GREAT JOB...THANK YOU"
  • "GREAT JOB...THANK YOU"
  • "great job"
  • "thank you"
Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.