Although it does not get much of attention in the fast changing world of today, the upcoming free trade agreement between the EU and US under the name of the Transatlantic Trade and Investment Partnership (TTIP) is a major step in EU-US trade relations. One that is also surrounded by much controversy, especially with respect to the way in which the agreement may change investor protection Although trade already is relatively free between the EU and US when compared to other regions, the new treaty is expected to have a large impact in some industries.

Your client is a medium sized car parts supplier in Germany. It has a wide range of products that concentrate on parts for engines, gears and brakes. This industry in Germany is dominated by family owned firms and supplies most to the German car industry. However, your client also has some exports to the US and, given the slack in growth in Europe, the company is contemplating a strategy to increase its market share in the US. The company management thinks that the new trade deal will favor them in the coming years especially against Japanese and Korean car parts makers. For this reason, the German car part company has hired your consulting company to conduct a survey on how the trade and investment deal may impact the German car part industry.

After the research, you are asked to write a small executive summary of the consulting report (the assignment of this exam question), in which you summarize the potential changes to the industry and how the company may react to these changes.

Answer rating: 100% (QA)

Executive summary of the consulting report The Germany car parts industry want to expand their market share by supplying car parts to the US car vehicles industry now This strategy leads to the Germany with success but it has to use some strategies that overcome their business threats and risks attached by this business expansion plan According to the market survey the Germany one of the largest automobile industry and in the world so in this respect if the car parts industry start their exports to the US then they can enhance their market share but also they increase their annual output So when we make merger with different industry we have to face many challenges and business risk due to two different industries When the business starts internationally specially for making exports to the other country it has impacts internally and externally factors In international trade relationship become very complex and challenging but the opportunities in the foreign market increased The use of behavioral theories increased in international business There as different impacts when the Germany car parts industry starts their business in US they are discussed below Potential changes to the industry Strong market position When the Germany car part industry start exports or business in the US they have chance to enhance their business internationally and also take the benefit of enjoy the economies of large scale which cuts its cost and expands their profit so in this way its a strong point for the German ... View the full answer