read the case study on Hyundai. Use the case as an illustration of the various theories of international trade we have discussed. Which theory support high on days expansion into international markets?

CLOSING CASE Hyundai: Leading the way in the Global Auto Industry and Equus The global automotive industry is one of the largest and most in ternationalized business sections. There are seventeen maior global exchange rates currencies under owes much of a success to tvorable international tomotive companies producing more than one million cars a year. Hyundai Motor Company in South Kors number one carmaker Background on Hyundai and the tenth largest in the world generating about 5100 billion in Hyunds was founded in 1947 by Chung yung vonary entre sales. It sells vehicles in over 190 countries, producing about don car and minivan models, plus trodo, buses, and other com near from a peasant background Wythe 1970, the form had begun ecial vehides Popular models in the United States are the Accent aggressive effort to develop engineering capabilities and new designs and Sonata, while exports to Europe and Asia include the GRD in the auto industry in the 1980 Hund began sporting the an economy car priced at $4.995. to the United States. An instant cest Excel sports grew to 250,000 units per year. But the cost fered from quality issues and a weak deal network Buyer confidence The Industry wared in the lite 1990s and Hyundas brand equity wakened During the recent global financial global automotive sales de response to complaints, Hyundai inated movement cined to wearecord lows Automotive industry profits suffered due programs and introduced a 10-year power train warranty program to significant excess production capacity. Although there is capacity unprecedented in the auto industry. The strategy was aujo tuming to produce 80 million cars worldwide, total global demand tell to only point for the form bout 60 million a year. This led to consolidation and divestitures cluding those between Ford and Land Rover, Jagaw and Volvo, Geographic Diversification and Chrysler, and General Motors and Opel among other consistent In 1997, Hyunda bultar factory in Turkey ng the firm concent with new trade theory the required scale compels automakers to access to key markets in the Middle East and Europe. NextHyundai target world markets, where they can achieve economies of scale and opened a plant in India and within a few years became the court mamice sales best-seling brand of imported in 2002, Hyundai tandhed a factory in China, doubling production and is mig for 20 percent share of the The Industry in South Korea Chinese car market. The firmato partnered with Guangzhou Motor Despits large size the car market in South Korea Korealaisut Group, winning entry to China huge commercial vide market in toet to sustain indigenous automakers like Hyundai and Kia Koma addition to gain access to low-cost high-quality labot in emerging hoch numerous competitive advantages in the car industry. The mukits. Hyundai hope its presence in bor howrooms will more country is a world center of new technology development Korea consurner awareness and drive news Most recently. Hyundai abundant, cost-effective knowledge workers who drive innovations been camping up ales in Europe in design features production, and product quality. The country also Hyundai uses for to develop by operations around the word has a high savings rate with massive inward for which ensures a Management choses locatons based on the advantages they bring to wady supply of capital for carmakers to fund R&D and other ventures the fum. The firm established plants in iron Sudan Taiwan Vietnam Collectively, Korea abundance of production factors in cost-effective Venezueland numerous other countries. Recently, the form opened boe knowledge workers, high technology and capital represent key plants in Europe and the United States. Hyunda has RSD centers in bation specific advantages Europe, lapan and North Americait us distribution centers and Korn consumers are demanding Carmakers take great pains marketing subsidiaries at various locations that ever parts to it to produce high quality automobiles Intense alty in the domestic expanding base of car dealers worldwide Hyundai atos regional auto industry ensures that carmakers and auto parts producers improve headquarters in Asia, Europe, and North Amenica 16 guante con products continuously trol over production and marketing the fum has nemated many of The Kenan economy is dominated by several conglomerates its operations called charbons . They include Hyundai Samsung, LG, and SK and a To remain competitive Hyundal employs inexpensive, high-quality count for about 40 percent of Korea GDP and export labor Engines, tires, and other key inputs a sourced from low-cost The Korean government has imposed stringent accounting con- suppliers. The firm has entered various colaborative ventures to to on many of these im. The government cooperates dosely cooperate in RAD, design, manufacturing and other valuedding with the business sector protecting some industries, ensuring funds activities. These allow Hyundai atosto foreign partnershow for others, and sponsoring still others. The government promoted how capital distribution channels, marketing assets, and they moorts of raw materials and technology at the expense of consumer to overcome government imposed obstacles for example, Hyunda goods and encouraged savings and investment over consumption partnered with DaimlerChrysler to develop new technologies and Partly due to these efforts, Korea is home to a substantial industrial prove supply chain management Compared to lacanese or Westem cluster for the production of cars and car parts the nation benefits val. Hyundai has superior cost advantages the son of from the presence of numerous suppliers and manufacturers in the Nigh-quality inputs obal automotive industry While panese auto gants such as Toyota and Hand how in past years. Hyundai ato benefited from a weak Korean won on US sales for their profits, Hyundai a more diversified Morth America accounts for only 22 percent of Hyundas total whefurope and cones currency, making poces for Hyunda cans cheaper for custom in Europe and the Unded States who buy imported cars in their local As excluding Korea) regresent tout 30 percent 160 PART 2. THE ENVIRONMENT OF INTERNATIONAL BUSINESS Elantra was named the North American Car of the Year at the 2012 Hyunda recently bounched its first roury mode, the Genesis. The Recent Events Detroit Auto Show, trumping industry favorites like the Ford Focus and Volkswagen Passat A recent marketing innovation is the Assurance Program" under within one year of purchase. The program even pays the customer's keuse payments for up to 90 days while the customer searches for new job. Owners who elect to keep their cars are not required to reimburse Hyundai new standard bearer in the global auto industry gori Pinflation Thinking Skills, Analytic Skills, Multiculturalism, and Diversity General Motors as the official automotive sponsor of the Academ Hyundal continues to launch new marketing campaigns and to Awards Hyunda has pursued internationalization aggressively While many global firms struggle to stay afloat during a crisis, Hyund which buyers can return recently purchased cars if they lose their job seeking to expand. Hyundai sees the crisis as an opportunity, plans to emerge even stronger. Hyundai has improved quality increased sales against all odds. Given its focus on quality, energy ciency cost control, and customer satisfaction, perhaps Hyundai