The global business environment has evolved significantly in recent years. These changes come with both positive and negative aspects that businesses now face in this globalized economy. Globalization has its advantages and disadvantages. Some advantages of globalization are that there is a global market for businesses and better access to products from different countries, cash flow is stable which decreases monetary value, many options for investment, technological development and growing demand for products. Some disadvantages of globalization are that many people lose their jobs due to outsourcing, companies build units in other countries, which leads to social degeneration and loss of cultural identity. Globalization has paved the way for a free trade and business model in the United States. In fact, it has the potential to make the world a better place. People around the world are more connected to each other than ever before. Information and money move faster than ever. The products and services of the global automotive industry are produced in several regions of the world and available everywhere. International automobiles are more common. Globalization is an economic tidal wave sweeping across the world. The automobile industry is generally considered to be at the forefront of globalization. General external environmental factors affect each industry in different ways. Today, almost all automobiles are manufactured outside the United States. In reality, there is no such thing as a vehicle built in the United States with proprietary American parts. The automobile industry is an industry affected by globalization. More and more companies are expanding their operations and market reach beyond the boundaries of their "home...... middle of paper...... efficiency, security and comfort". In the IDC Manufacturing Insights report, it basically says that strategies should shift from economy of scale to economy of scope, which focuses on flexible manufacturing capabilities on a global scale. The global car population reached one billion in 2010. High growth rates in car ownership in China, India and Brazil have reflected economic development and demand in these countries. To conclude, globalization has had both positive and negative effects on the automobile industry. Globalization has been used by businesses to gain a competitive advantage over the competition, which poses a burden for them. Jobs have been lost due to globalization. During the first recession, employment declined significantly and, despite employment growth in the mid-1980s and 1990s, employment has never since returned to its previous level. 1978..