Allegory of the Cave V Pleasantville

The movie Pleasantville is very symbolic. It is a movie that could be interpreted a number of different ways. Most will agree, however, that the basic point of the movie concerns the subject of change. But we can also see the movie as a modern version of Plato's Allegory of the Cave. From this point of view, Pleasantville depicted in black and white represents the cave, while color represents the world of enlightenment beyond the cave. Before David and Jennifer become Bud and Mary Sue, everything in Pleasantville is apparently perfect. Everyone lives their day-to-day lives without any problems.Pleasantville seems to be a place of perfect bliss. Everyone in the little town lives a life of safety, happiness, but also ignorance. Outside of Pleasantville, there is disorder and unhappiness. At the beginning of the movie, David is the typical â€Å"loser† at school; he is unhappy with his life. His sister, Jennifer, is a promiscuous teen. All of these scenes are in color. In Pleasan tville, however, before the town is ruined, everything appears in black and white, and all the people are apparently content with their lives. For example, nothing here can catch fire, and the firefighters only have to rescue cats out of trees.The basketball team always wins and players on the team make every single shot. After David and Jennifer are introduced to the peaceful, harmonious town of Pleasantville, however, the flawless, isolated, but ignorant community is turned upside down and ruined. When Bud tells Skip that his sister wouldn’t want to go out with him, for example, Skip suddenly can’t make a shot, and is thus unhappy for the first time. When Betty Parker learns about sex, a tree catches fire, and funnily the firemen do not know what to do, and only respond when they think that there is a cat stuck in a tree. Towards the end of the movie, people start to riot.They destroy the burger place, and they burn piles of books. There is total chaos and disorder. The original peaceful community is lost when the contagious disease of enlightenment, represented by color in this movie, is introduced. One could argue that this movie portrays change and enlightenment as a good thing, but there is also substantial evidence that this movie is showing change as a bad thing. The laws of entropy apply in this movie. Pleasantville exists in a delicate balance of perfect order, but when new things are introduced to throw off the balance, everything naturally turns to chaos and disorder. Allegory of the Cave V Pleasantville The movie Pleasantville is very symbolic. It is a movie that could be interpreted a number of different ways. Most will agree, however, that the basic point of the movie concerns the subject of change. But we can also see the movie as a modern version of Plato's Allegory of the Cave. From this point of view, Pleasantville depicted in black and white represents the cave, while color represents the world of enlightenment beyond the cave. Before David and Jennifer become Bud and Mary Sue, everything in Pleasantville is apparently perfect. Everyone lives their day-to-day lives without any problems.Pleasantville seems to be a place of perfect bliss. Everyone in the little town lives a life of safety, happiness, but also ignorance. Outside of Pleasantville, there is disorder and unhappiness. At the beginning of the movie, David is the typical â€Å"loser† at school; he is unhappy with his life. His sister, Jennifer, is a promiscuous teen. All of these scenes are in color. In Pleasan tville, however, before the town is ruined, everything appears in black and white, and all the people are apparently content with their lives. For example, nothing here can catch fire, and the firefighters only have to rescue cats out of trees.The basketball team always wins and players on the team make every single shot. After David and Jennifer are introduced to the peaceful, harmonious town of Pleasantville, however, the flawless, isolated, but ignorant community is turned upside down and ruined. When Bud tells Skip that his sister wouldn’t want to go out with him, for example, Skip suddenly can’t make a shot, and is thus unhappy for the first time. When Betty Parker learns about sex, a tree catches fire, and funnily the firemen do not know what to do, and only respond when they think that there is a cat stuck in a tree. Towards the end of the movie, people start to riot.They destroy the burger place, and they burn piles of books. There is total chaos and disorder. The original peaceful community is lost when the contagious disease of enlightenment, represented by color in this movie, is introduced. One could argue that this movie portrays change and enlightenment as a good thing, but there is also substantial evidence that this movie is showing change as a bad thing. The laws of entropy apply in this movie. Pleasantville exists in a delicate balance of perfect order, but when new things are introduced to throw off the balance, everything naturally turns to chaos and disorder.

Physical Development Essay

0 – 3 Years oldPhysical Development Birth to 3 Months: 1.1 From birth babies move there heads head’s and arm this moves down through to legs and feet. New Born babies turn their head side to side when their cheek is stroked, which aids in feeding. Babies can turn their head side to side when laying on their backs or belly and can bring both hands together at the chest or mouth at the age of 1 month old. 3 – 6 Months: 1.1 At 3 months of age, babies progresses to lifting their head and chest up when lying on their belly and may press up with its arms. At 3 to 4 months old the baby can kicks their legs and move arms when laying on their backs and also bats and try to grasp at toys, according to Healthy Children. A 5 to 6 months old baby begins rolling belly to back and back to belly closer to 6 months old. 6 – 7 Months:1.3 At 6 months Baby can raise their hands above their body Sits with proper support Begins finger feeding Babbles and laugh Changes tone of voice to express their self Starts to chuckle. Their brains develop enough to form sounds in an effort to communicate. Imitates integration: understands they can get attention y making noise and banging objects. 1.2 At 7 months a normal healthy baby can sit up by themselves, crawl around also hold on to chair or table and pull themselves up to start taking steps. If you place an object like a toy in front of the baby tempting him or her to reach forward to grab the item or toy up. Babies fine their motor skills and also start to improve movement. Babies also like to put toys in their mouths and rub their gums. When it is time for dinner they can also have solid food to eat especially when the babies are been weaned off the mushy baby food. 8 – 12 months According to writer, Stehanie Labandz, Babies also start to utter their first words – despite mum’s best efforts; this is often â€Å"dada†! Initially, babies use â€Å"mama† and â€Å"dada† indiscriminately, but as they get older, they learn who’s who. Reading simple books to your baby now will help their speech and build the vocabulary of words that they can understand. Your baby will be ready for small portions of purà ©ed meat and other proteins, such as lentils. If he seems to dislike a food, wait a few days and try it again. You can also introduce easy-to-grasp finger foods, such as soft bread, banana, cheese and steamed vegetables. Introduce one new food at a time and wait three days before introducing another one, in case of any allergic reaction. Your baby should also start eating lumpier purà ©es at about this age. Babies also learn to take their first steps by holding on to furnitu.re independently while supervised. By now baby has hand to eye coordination and watches you brush your hair then baby can imitate by holding a brush to brush their own hair. They watch you hold a phone to talk and copied your movements. Read more: http://www.livestrong.com/article/109222-physicaldevelopment-children-ages-years/#ixzz2FIE0iK9v Mar 15.| By Stephanie Labandz http://www.livestrong.com/article/109222-physical-development-children-ages-years 12 months old – 3 years old Weight is now approximately 3 times the child’s birth weight. Respiration rate varies with emotional state and activity. Rate of growth slows. Head size increases slowly; grows approximately 1.3 cm every six months; anterior fontanels is nearly closed at eighteen months as bones of the skull thicken. Anterior fontanel closing or fully closed, usually at the middle of this year. Chest circumference is larger than head circumference. Legs may still appear bowed. Toddler will begin to lose the â€Å"Baby Fat† once he/she begins walking. Body shape changes; takes on more adult-like appearance. 2 years old Physical Development Posture is more erect; abdomen still large and protruding, back swayed, because abdominal muscles are not yet fully developed. Respirations are slow and regular Body temperature continues to fluctuate with activity, emotional state, and environment. Brain reaches about 80 percent of its adult size. 16 baby teeth almost finished growing out 3 year old Physical Development Growth is steady though slower than in first two years. Adult height can be predicted from measurements of height at three years of age; males are approximately 53% of their adult height and females, 57%. Legs grow faster than arms, Circumference of head and chest is equal; head size is in better proportion to the body. â€Å"Baby fat† disappears as neck appears. Posture is more erect; abdomen no longer protrudes. Slightly knock-kneed. can jump from low step can stand up and walk around on tiptoes â€Å"Baby† teeth stage over. Needs to consume approximately 6,300 kJ (1,500 calories) daily 2 – 7 Years old Physical Development 3 year old Physical Development The 3 year old child has develop in many ways and is now balancing They tend to run faster than before and talk more fluently A 3 year old can dress him or her self and sometimes puts clothes on back to front without releasing. They hold a pencil or crayon by gripping with firmly with fingers The coordination eye and hand contact of building brick is now easy for the child Go upstairs and spend time on their own playing with toys Speech is more clearly spoken when having a conversation with family or friends Child can sleep all night dry bed and use the bathroom in the mornings Children at this age can throw a ball and some can catch the ball Riding a tricycle bike is a favourite play time for a 3 year old 4 year old Physical Development A four year child physical development can walk up and down stairs Balance on walking on the wall and walking long distance They can catch a ball and throw a ball also bounce the ball Getting dress in the morning and doing up buttons and zips A four year old can go to the toilet by themselves Some four year can ride a bike without support after learning to balance other ride tricycle bikes, scooters and roller skate A four year old likes to write their names, recognise spellings, they like to paint and draw pictures and tell you what is going on in the picture. They like to run and race each other. 5 year old Physical Development At this age of 5 years old the child goes to school and mixes with other children They can run and jump also run backwards, roll around and spin around They can balance on a low beam, climb up and down climbing frame Swing on a swing by pushing their legs in and out with the wind Play games together that they invent like mummy’s and daddy’s Some children at this age have an imaginary friend who eats’ and plays with them. They like music and can dance to the rhythm of the beat A child at this age will like to help out mum when she is working at home They also like to learn how to bake by mixing the butter and sugar together when mum is baking or even at school. They can write and learn reading and  colours, making building blocks with Lego At this age the child can hold scissors and cut out shapes, use glue and stick paper when making a hat or what ever art work they are creating. 6 to 7 Year old Physical Development When a child has reached the age of 6 years old the child can learn and play more in a shorter time of 30 minutes to 45 minutes. They now like to do work that is set for them such as painting, writing and maths They know who is a boy and who is a girl They know what is fantasy and what is reality Dress and undress themselves at P.E when at school and follow instructions movements They grow at a slower rate now The physical development growth maybe the same pattern as their family history At the age of 6 a child can make connection between feelings and thoughts and action Some children at this age wet him or herself when they get excited At 7 years old a child finds it difficult to make choices special when you take them out they want everything. They are very energetic and love moving around dancing, tapping hand or foot, wiggling they find it hard to sit still. At dinner time they tend to eat with fingers and chat with a mouth full of food Plays on their on and make up a game when playing with toys They have growth spurts at this age. 7 to 12 Years old Physical Development According to Heather Robson a writer, Children at the ages 7 to 12 years old do not grow at a fast rate as they used too in the first 6 years of their life. As they are growing into adolescence. Children between 7 and 12 years old are independent when it comes to physical abilities They have the ability to learn how to sew, help paint a wall if your painting, Children at this age 7 to 12 likes to learn a musical instruments like the Clarinet, Piano, Drumming lessons, read music notes. They also tend to sulk a lot at this age of 7, when they don’t get their own ways and withdraw themselves. When a chid is of 7 years old also get very frustrated when they can’t complete something and fail. At 8 years old they learn to play well at group  games. They also recognize the time of day. They talk about past times to do with themselves. By the age of 9 children can be critical to others. They now enjoy the company of friends outside their homes. They have a dress sense of their own when putting clothes together for themselves. They like their hair cuts or styles in a particular way. They want privacy from younger siblings when they have friend or cousin over at their house and no longer want the younger child/children to play in their games. Their bodies go through changes as they come towards the teenage years When the children get older and reach the age of 10 to 12 years old they begin to change body shapes and sizes. Girls they begin to develop breasts and hips by the age of 10 t0 11 years old Some girls start their periods at the age of 11 or 12 depending on their body development. At this stage in growing up they become anxious about their body and interested in sharing with their friends who age going through the same changes. They are becoming a young woman and are more mature than boys at this age. Girls are following in their mother’s ways of how they developed. Boys at the age of 10 to 12 years old also tend to change body shape and sizes They may notice small pubic hairs start to develop on their body just as girls do. They are at an age when they are more interested in sports and very competitive when playing sports. They love music and dancing show off their best moves of who is better. They want to have muscles in their arms and show their strengths Tend to play among themselves in the play ground at school. http://www.ehow.co.uk/about physical children 7 -12-years.html

Jack London and His Call of the Wild Essay

â€Å"He was sounding the deeps of his nature, and of the parts of his nature that were deeper than he, going back into the womb of Time. † – Jack London, The Call of the Wild, Ch. 3 (Jack London Quotes). This quote summarizes the success of Jack London’s writing career in one simple sentence. London’s success and inspiration for his naturalist style can be accredited to the way in which he was raised, and his experiences during his lifetime. Jack London, was born John Griffith Chaney on January 12, 1876 near San Francisco, California. His mother was abandoned by London’s real father, William Chaney a traveling astrologer, shortly after it was discovered she was expecting Jack. This later influenced London’s decision to leave his family at a young age. His mother remarried quickly, and Jack took on his stepfather’s name, London. Because of complications, London was primarily raised by Virginia Prentiss, a former slave, until he was around five years of age (Stern 700). The family lived in poverty, and he had many siblings, but was not particularly close with any of them (Jack London Biography). At age 13, he quit school, borrowed money for a boat, and began harvesting oysters in the Pacific Ocean. By the age of 15, Jack was a successful business man, and known around the docks as â€Å"The King of the Oyster Pirates† (Stern 700). He later reflected on this difficult time by stating, â€Å"Life is not a matter of holding good cards, but sometimes, playing a poor hand well† (Jack London Quotes). He was later caught in this illegal act and then hired as part of the coast patrol because of his extensive knowledge of the sea. After a voyage to Japan with the patrol, he returned to California in the middle of a recession (London, Jack). After struggling to find a steady job, London joined Coxey’s army, a hobo organization (Jack London Biography). After becoming bored with that, he enrolled in high school and completed a four year degree in just one year. Shortly afterward, London enrolled at the University of California on borrowed money (Jack London). While attending the University he spent large amounts of time in the school’s library reading the vast collection of books. Among these were works from Friedrich Nietzsche, Karl Marx, and most importantly, Charles Darwin. Influenced by his readings, London created his own fusion of socialism, male dominance and white superiority beliefs (London, Jack). In fact, some experts even refer to his books, White Fang, and The Call of the Wild, as fiction versions of Darwin’s Evolution (Stern 700). In the middle of London’s college career, the first Klondike gold rush began. In 1897 alone, over 30,000 men, London among them, rushed to the Yukon territory in search of the precious metal. The majority, like London, returned unsuccessfully. Although he didn’t get rich on gold in the Yukon, he would later be rich on something else from the cold, harsh place; his memories, inspiration for two of his most successful novels, White Fang and Call of the Wild (Yukon). Around the turn of the century, Robber-barons as they were called, monopolized businesses, companies, then entire industries. Jack knew this fact, and believed that writing was his only way out (Jack London). London’s very first writing success Typhoon off the Coast of Japan, inspired by his trip to Japan, came in 1900, the same year he married his first wife, Bess Maddern. Together they had two daughters, Joan and Bess (Jack London Biography). During his first marriage, London published some of his most successful stories, including Call of the Wild (1903) and Sea Wolf (1904) both in which he dramatized â€Å"atavism, adaptability, and the appeal to the wilderness† (Jack London). In 1905, following an affair, London divorced Bess Maddern and married Charmair Kittredge. He later used his second spouse’s character as the protagonist in many of his works. London encouraged Charmair to pursue writing, and with his help, published three books, including a biography over Jack because of his eventful past (Stasz 1). Later that same year, London found his true love, Beauty Ranch. Later in his life he stated, â€Å"I write for no other purpose to add the beauty that now belongs to me. I write a book for no other reason than to add three or four hundred acres to my magnificent estate† (Jack London Quotes). London’s only true love perhaps, was the wilderness, traveling, and the great outdoors. In his later years he was well traveled, visiting Japan, Canada, Cape Horn, Australia, and even Mexico (David 1). London had nearly completed his dream house on Beauty Ranch when it mysteriously burned down; arson was suspected. From then on London’s health slowly but steadily declined. Jack London died on November 22, 1916 due to Kidney failure (Stern 700). Jack London is often considered the first American author to gain international fame through his fiction works alone. Although a very successful author, even in other countries, London’s books also received harsh criticism. His ideas and concept were said to, lack consistency and precision. He also struggled with other thoughts. He wrote and supported women’s suffrage, yet believed in male dominance. London supported white superiority, yet thought it was shameful that, the reckless white men destroyed the cultures of the natives he had seen while searching for gold (Stasz 1). Despite being known for his novels, London also wrote a few non-fiction books, and many short stories, his most famous being To Build a Fire, inspired by his own adventures in the Yukon (London, Jack). Although London went through many adventures, he did not credit these to his inspiration. When asked where he received his inspiration he answered, â€Å"You can’t wait for inspiration. You have to go after it with a club† (Jack London Quotes). Jack Londons writing’s are some of the most famous works of naturalism of all time. They have been described as, â€Å"works that deal romantically with elemental struggles for survival. He is one of the most extensively translated of American authors† (David 1). Jack London was a go-getter. Although he died at a young age (40), he accomplished much during his lifetime. The proper function of man is to live, not to exist. I shall not waste my days in trying to prolong them. I shall use my time† (Jack London Quotes). London’s success and inspiration for his naturalist style can be accredited to the way in which he was raised, and his experiences during his lifetime. For without these, London would’ve had nothing to write about. Because of the role fate played in his life, London grew to become one of the most successful authors of all time, and his books continue to sell in our modern day and age.

State corportate crime Essay Example | Topics and Well Written Essays - 500 words

State corportate crime - Essay Example Dailmer-Benz came into existence in the year 1926. It was mainly because of the Nazi Party’s help the company was successful to make a rapid growth in the world market. Warfare was the main thing which helped the company in its business. In any case, the company took a safe side of an opportunist organization during the World War II. This is why it was successful in remaining untouched even in the time of Allied Force’s recurrent bombing. As far as we can know from the company’s history, labor exploitation had reached to its zenith during this time and the most unfortunate Jews were the preys to that situation. On the other hand, some American corporations were too clever to stand by both the Americans as well as the Nazis. This was done for the fulsome benefit which they had prospected in the warfare. We get two of the major American automobile companies’ name in this context; they are: General Motors and Ford. Expansion was an ever going process for these companies from the early 1930’s. But, with the beginning of World War II, they realized the golden chance to make the best use of the troublesome market. Many of us will be shocked to know about their deeds in that period. Ford and General Motors were directly involved in helping the Nazis in the warfare. Both the companies supplied 90% of the vehicles, especially trucks, used by the Nazi Army. There were two types of trucks which were built by these corporations. They were the â€Å"mule† trucks and â€Å"heavy-duty† trucks. Nazi German Eagle was an award which was given by the Nazis for any help or patroniz ing from somebody or some organization. It will almost unnerve us to know that the very first person to get this award was the Chief Executive of Ford, although being an American company. The nation America was fighting against the Nazis to save the lives of Jews and

The Pacific Theater of World War II Research Paper

The Pacific Theater of World War II - Research Paper Example At the time, the US was not so active in world politics, but Japanese assumed US inclusion in the future. The surprise attack began on a Sunday morning on 7 December 1941, with layers of Japanese bombers and fighter aircrafts intended to destroy the Pacific Fleet in the harbor as well as US aircrafts on nearby fields. The attack destroyed three main battleships, three destroyers and one mine laying ship according to the initial reports by the Secretary of Navy. Furthermore, 72 aircrafts including bombers and fighters were destroyed along with 128 damaged. Casualties were near 2,400 which mostly included armed personnel.2 The attack achieved its objective of destroying most of the fleet and the damages bought Japanese some time to secure footholds in Pacific without interference from the US. The attack pulled US into the war and it is referred as the opening of the Pacific front. The Pearl Harbor was one of many targets across the Pacific that formed part of a very large offensive lau nched on 8 December 1941 by the Japanese. Thailand was invaded within a day and Hong Kong within three weeks. US forces stationed in Guam and the Wake Island surrendered to the ground offensive. Furthermore, Malaya was taken from the British rule within two months. This initial offensive launched on the 7 and 8 December 1941 was extremely successful campaign. The Japanese controlled the region and dominated the Pacific without major threats. The victories in Malaya as well as Thailand provided launching pads to establish air superiority in surrounding region. British battleship Prince of Wales was sunk by Japanese bombers launched from bases in Malaya. Almost a month after the attack on Pearl Harbor, Japanese started... The Pearl Harbor was one of many targets across the Pacific that formed part of a very large offensive launched on 8 December 1941 by the Japanese. Thailand was invaded within a day and Hong Kong within three weeks. US forces stationed in Guam and the Wake Island surrendered to the ground offensive. Furthermore, Malaya was taken from the British rule within two months. This initial offensive launched on the 7 and 8 December 1941 was an extremely successful campaign. The Japanese controlled the region and dominated the Pacific without major threats. The victories in Malaya, as well as Thailand, provided launching pads to establish air superiority in surrounding region. British battleship Prince of Wales was sunk by Japanese bombers launched from bases in Malaya.Almost a month after the attack on Pearl Harbor, Japanese started to consolidate their position by securing strategic assets in the region. Tarakan and Manado fell within days of invasion; Tarakan was rich in oil fields and a s trategic airfield, whereas Manado provided control of the Minahasa peninsula that could be used to approach Australia. In the same time period, invasion of Burma started on 15 January 1942 along with invasions for Singapore and New Guinea. British Commonwealth forces retreated from Burma and Singapore fell to Japanese in almost a month. By the first six months, Japanese controlled the Pacific from Burma in the west, Singapore in the south, New Guinea in the east and numerous islands in between.

Ethnocentrism Essay Example | Topics and Well Written Essays - 500 words - 1

Ethnocentrism - Essay Example hropologists agree, likes to make premature judgments about other cultures and consequently brings false assumptions into his dealings with other cultural groups. In international relations, as a result, innumerable conflicts have broken out in the name of ethnocentrism. Constructive resolution of such conflicts between social groups have proven intractable in most cases because of one group’s lack of understanding of the other’s cultural uniqueness. One of the earlier names of ethnocentrism is colonialism, in which one culture sought to â€Å"civilize† and â€Å"develop† another. As was often the case, the social group placed under the gun of colonialism had its own concept of â€Å"civilization† and â€Å"development† which was quite different. Conflicts inevitably occurred. â€Å"When people are denied the legitimacy of their own life goal,† notes anthropologist Ken Barger, â€Å"they turn to radical means outside accepted practice.† Thus, we witnessed the bloody revolutions in colonized nations against colonizers that eventually led to global de-colonization starting in the 1950s, to coincide with the growth and acceptance of the United Nations. Colonialism is actually one of the three extreme forms of ethnocentrism, the other two being racism and ethnic cleansing. The latter gave rise to the most notorious ethnocentric of all time, Hitler, who sought to annihilate the Jews in favor of the â€Å"pure’ Aryan race and in the process triggered World War I. The belief that any culture represents the pinnacle of human achievement, which certainly possessed Hitler, is cultural arrogance of the worst form, a gross misreading of history and anthropology. Evidence of the evils wrought by ethnocentrism is all over the globe in modern times. On top of this is the mutual ethnocentric attitude between the Islamic world and the capitalist societies represented by the United States which now more than ever threatens to divide the planet. The Islamic societies

Take a position by answering-is it possible to define and measure Essay

Take a position by answering-is it possible to define and measure happiness - Essay Example The desire to understand and seek happiness has been profound among individuals and scholars like Plato, Aristotle and Mills. To prove the complexity of happiness, all the scholars had different views which make happiness a mystery. In his article Critchley (449) asserts that there is no clear definition that fits the imaginable aspect of happiness. He asserts that happiness can only be measured when certain conditions are met. The conditions, described by Rousseau state that a happy person should not be bound by anything including time, no consideration of the present nor the future, and no pain or pleasure. This implies that with absence of any of the imperatives, then a person cannot be described as happy. Consequently, happiness cannot be explained by science theories that may attempt to lay measurement criteria (Critchley 450). In the real world, the requirements of happiness as described by Rousseau cannot be achieved, this is because the world is fast changing and the people a re often time conscious. A person minds more of the present and the future by carefully managing his or her time. Death is unforeseen and thus there cannot be a guarantee of continuity of existence. As such, measuring happiness proves to be a difficult task. In the subsequent arguments, Critchley asserts that human beings can be considered happy if they attained the status of a super being like God, where all the factors that define happiness are present. However, this status cannot be achieved in a contemporary world. Trying to understand happiness reigns in day to day activities of people. People try to lay their own definitions of what happiness might be and try to work towards the objective. These arguments can be in form of gaining property and wealth, positions in the social and political quarters and also fame. However, all this pursues do not guarantee happiness. One would argue that a wealthy person is happy! The answer would definitely be no. This is because happiness cann ot be created out of wealth rather it can be created from the satisfaction that one gets from wealth. In addition, Mill explained that the more a person tries to gauge how happy he or she is, the more he or she becomes confused. This leads to enlightenment that happiness cannot be measured by material well-being of a person. As such, probing the definition of happiness will always make people unhappy due to extreme requirements of happiness. In the current world, happiness cannot be measured due to the ever changing economic and social conditions, that is, what seems to be a happiness parameter is quickly eroded by the dynamic world. This is because the current justification of happiness has been inclined on material welfare of people that than satisfaction of the soul. Doctors have claimed that the genetic composition of a person can show the level of happiness (Kingwell 414). This has been brought about by scientists who believe that genes can bring a smile on a person. Maybe this is true; however, smiling may not be regarded as happiness. In one way, smiling can be used as an indicator of happiness, in the other way; smiling does not always imply that a person is happy. This is because it can be faked to fit an occasion. According to Aristotle, happiness can result from living an honorable life. Mill also asserts that a dissatisfied human is better than a satisfied pig. This follows a series of

Critical Analysis of Turkey's Accession to the European Union Research Paper

Critical Analysis of Turkey's Accession to the European Union - Research Paper Example This essay will involve significant barriers and issues that have stood in the way of Turkey like human rights, law and other reforms they need to undertake. After this, the paper will try to predict the possibilities of EU entry for Turkey. The origins of the European Union can be traced back to the 1951 Treaty of Paris which established the European Coal and Steel Community. This came after the lack of cooperation and the alignment of old enemies in Europe had culminated in the two World Wars. The Second World War saw the utter destruction of the most civilized continent on the planet. The subsequent formation of the United Nations with the view of promoting human rights and global security formed the framework which gave the impetus for cooperation between nations in sub-regions. This paper stresses that the European Union is a supranational organization which is meant to build a common future for its member states through the coordination of policies within these nations. The European Union focuses on International Economic Integration of member states and this is done through free trade, customs unions, common markets and economic unions. The European Union is made up of people with majorities that are linguistically Indo-European and religiously Christians . Only Estonia is the nation that does not have these two features in its majority population. The enlargement of the European Union is done on a case-by-case basis. ... ean Union focuses on International Economic Integration of member states and this is done through free trade, customs unions, common markets and economic unions5. The primary goal or finalite politique of the European Union is to create a Federal Europe committed to welfare, security and prosperity to its member states and citizens6. This implies that the European Union is mainly focused on promoting important changes in the social and economic well being through the sharing of commonalities and the promotion of trade and other activities that promote wealth generation and economic growth. Culturally, the European Union is made up of people with majorities that are linguistically Indo-European and religiously Christians7. Only Estonia is the nation that does not have these two features in its majority population8. Entry to the European Union Although Turkey has strong connections to the European Union in both the historical and geographical sense, it is officially not a member of the European Union. This is because there are some important entry rules that all aspiring nations need to adhere to. Turkey's position on this subject wavers and they have to adjust to meet most of them. Traditionally, the enlargement of the European Union is done on a case-by-case basis9. This is because before a member state joins, members in good standing will need to examine their status and acceptability before granting them the right to accede into the Union. A notable case is that of the United Kingdom which had its application for membership vetoed by Charles de Gaulle's France on several occasions. However, in the case of the Central and Eastern European Countries (CEECs), the extension was done through a systematic approach where a group of aspiring member states were given some

The Management Environment Essay Example | Topics and Well Written Essays - 2500 words

The Management Environment - Essay Example Although it is difficult to believe that Supply chain management is a recent concept since even Shakespeare discussed how ships and merchandise at sea can be at risk from various threats, the process of actually managing a supply chain through technology and modern communication tools is certainly a recent innovation. With reference to globalisation, logistics is simply the science of getting the required materials, goods or equipment to the right people at the right time and the development of this field owes a lot to the military history of civilisation which goes all the way back to the Roman era where armies had to be kept in supply even in far flung regions of the empire (Christopher, 2005). In the modern world, when supply chain management and the philosophy of logistics are combined in an efficient manner a company can become richer and more powerful than any emperor of the past. Supply chain management not only allows the right people to have the right things at the right time, it also makes sure that there is no wastage in the process and the overall costs of the business are reduced (Van Hoek, 2005). For the company, it could mean less mistakes in ordering the right part, making sure that production facilities around the world are occupied and that production matches the consumption as well as client requirements. Every business decision and every business choice comes with an associated cost which must be borne by the shareholders or the owners of the business which means that costs need to be reduced to ensure a healthy profit. An efficiently managed global supply chain does exactly that by cutting down costs in several important areas of business (Christopher, 2 005). Lummus and Demarie (2006) give the example of supply chain management experts such as Renee Gregoire and James Correll who discussed the importance of supply chain management with reference to

George Washington Essay Example for Free

George Washington Essay It has often been said that the entire ordeal leading up the American Revolution occurred as a direct result of two sides not having a common understanding. In fact, this simple interpretation of the more complicated problem might not completely explain everything that happened leading up to and during the Revolutionary War, but it can be used as an explanation for the rift in thinking that ultimately kept the two sides apart on a theoretical level. The British, for the most part, misunderstood what the colonists were looking for in their striving for freedom. The colonists, on the other hand, held a fighting spirit that could not easily be understood by people who were not there to experience it on a day-to-day basis. Two prominent thinkers from either side, George Washington and Edmund Burke, laid out their opinions on the matter in easy to understand terms. Their writings represent an interesting dichotomy. Burke, for the most part, understood what was going on in the colonies. Washington took an approach of broad support for his countrymen, which was representative of the patriotic spirit that permeated the time. Though Washington could never be accused of being a person that liked to get his hands too muddy in the political arena, he did have a pretty firm grasp on the overall feeling of the American people at that time. When he writes to George William Fairfax and Bryan Fairfax in a series of 1774 letters, Washington makes it very clear that he believes the country is ready to stand as one in the face of British opposition. Washington was a calculated man and one that was certainly not quick to jump to any conclusions without first investigating the other options. In his letter to Bryan Fairfax, Washington gives a clear indication of this and further makes indication that he believes all of his options to be expended. When he writes, â€Å"Shall we, after this, whine and cry for relief, when we have already tried it in vain,† Washington clearly indicates that perhaps, making requests of the British government is not enough anymore. To George Washington, Boston was only the breaking point in a conflict that had been long overdue. The plight of Boston was the plight of American and the conflict had arrived because, simply put, they had no other choice but to put up a fight. Though Washington was quick to lend his support to the folks in Boston, he was not fully supportive of their means. Though he agreed that perhaps what they did was necessary, he did not completely approve of how they went about things. As mentioned before, Washington was a calculated individual in every way. He hoped for people to take all options into account before making rash decisions. When the people of Boston opted to toss pounds and pounds of tea into the harbor, they were not making the most responsible decision, but they were making a statement. Washington could respect that statement and the stand that they had the guts to take, even if he did not undyingly support their actions. Washington wrote, â€Å"The conduct of the Boston people could not justify the rigor of their measures. † Still, he goes on to qualify that statement later in his letter. He indicates that sometimes, measures such as those are necessary when people will not take others seriously or respect their requests. To Washington, the main point was that a stand had to be taken somewhere, so he wasn’t angry that the people of Boston made that statement. In fact, he was happy with the idea of having a rallying point around which the colonists could congregate. From the British side of things, Edmund Burke took a slightly more contradictory approach with his thinking. He was a well respected British political mind. During that time, most well respected British minds wanted to use force and not concede anything to the colonists. Those people did not understand what motivated the colonists and certainly did not understand the passion with which colonists wanted to rid themselves of foul treatment. In short, most British political people, who were all of the way across the Atlantic Ocean, had no idea how bad they American colonists wanted it. Burke got it, however. He knew exactly what the colonists wanted and he understood how to motivate them. Edmund Burke’s primary assertion was that the British government was going about things all wrong. Like Washington, Burke was a very influential and deep thinker. He did not like to act without first thinking through all of the different scenarios that might take place. With that in mind, Burke wanted the British government to work with the American colonists, as opposed to working against them as they had been set on doing. He thought it was a good idea to promote reconciliation between the two sides because, in his mind, that was the only way to shut down the fighting spirit of the American colonists. When the British government pushed the Americans into a corner, they banded together and they came out fighting. This is evidenced by Washington’s comments about the Boston Tea Party. Burke also wanted to push for reconciliation because he understood the fact that Great Britain had to have some sort of working relationship with the colonies in the future. They could not make everyone in the colonies mad. In his speech to Parliament on March 22, 1775, Edmund Burke says, â€Å"Because after all our struggle, whether we will or not, we must govern America. † That was Burke’s primary point throughout the entirety of this speech. Win, lose, or draw, the British government had to keep the relationship with the colonies on good footing, or else there would eventually be a conflict to face. In addition to plenty of other things, Burke understood the nature of the American people. He also understood that the British government did not understand the nature of the American colonists. He knew that Great Britain had to keep that in mind if they wanted to be successful in making the American colonies listen to their rules. A fighting spirit was engrained in the American people and that was something that would not go away. In that same speech to the British Parliament, Burke let his partners in the room know that the American colonists were a fighting bunch. â€Å"In this character of the Americans, a love of Freedom is the predominating feature which marks and distinguishes the whole. † If the British government could not understand that, then according to Burke, they had no chance of exacting any change among the colonists themselves. This basic rift in understanding is the one factor that, according to Edmund Burke, would keep the British government from creating any change. Washing and Burke were on different sides, but they were very similar men. They both understood people and they understood what it took to motivate people. While Washington was a unifying voice in America, Burke served as a voice of reason in Great Britain. Their specific messages were different, but they were equally important to their respective nations.

Analysis of Indias Automobile Industry

Analysis of Indias Automobile Industry Following Indias growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives, Analysis of Indias Automobile Industry Analysis of Indias Automobile Industry Following Indias growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives,