Domestic market stagnation, cost pressures, intensified international competition and chances of emerging markets, have forced the German automotive industry to utilize international location advantages and thus production relocations have become the main strategy to survive in a globalized automotive market. These relocation activities are often viewed as being one-way directed and affected jobs are perceived as being permanent losses for the domestic economy. But in reality, relocation activities are becoming increasingly dynamic and since the turn of the century, more and more cases have been discovered, involving businesses that are returning their productions from abroad.
This study has involved exhaustive research to investigate the current scope and scale of Offshoring and Backshoring activities within the German automotive industry and its impact to the domestic labour market by means of a questionnaire survey. The results of the more than two hundred survey responses show that Offshoring activities continue to proceed and a strong shift in Offshoring activities at present takes place from the Eastern European to Asian regions, resulting in agglomeration, “band wagon” effects as well as
excess capacities especially in the Chinese market. The study further shows that relocation activities in the automotive industry nowadays do not necessarily result in higher earnings and constant cost savings but rather contribute to an increased competitiveness and to the future survival of the company. Beside ongoing factor price equalization within the age of globalization, a trend in Backshoring activities as stipulated by the media could not be observed so far. Above all, this can be drawn back on the high cost of Offshoring activities and low profit margins within the industry.
The findings of the study further concluded that Offshoring has indirectly contributed to the safeguarding of productive and especially non productive jobs at the domestic locations. Although
anticipated by press and media, Backshoring does not have any impacts on the domestic labour market.
Table of Contents
- 1. Introduction
- 1.1. Motivation
- 1.2. Research Objectives
- 1.3. Structure and Outline of the Research Project
- 2. Theoretical Considerations
- 2.1. Industrial Location Theories
- 2.1.1. Industrial location theory according to Weber
- 2.1.2. Behaviouristic and institutional location approaches
- 2.1.3. Kinkel's holistic model on location determinant factors
- 2.1.4. Porter's Model “The competitive advantages of Nations”
- 2.2. International Foreign Investment Theories
- 2.2.1. Historical Development of Foreign (Direct) Investment
- 2.2.2. Classical and Neoclassical approaches
- 2.2.3. Monopolistic approach by Hymer
- 2.2.4. Vernon's International Product Life Cycle Theory
- 2.2.5. Knickerbocker's theory
- 2.2.6. Theory of Internalization
- 2.2.7. Dunning's eclectic framework
- 2.1. Industrial Location Theories
Objectives and Key Themes
This thesis investigates the scope and scale of offshoring and backshoring activities within the German automotive industry and their impact on the domestic labor market. It uses a questionnaire survey of over two hundred responses to analyze the trends and motivations behind these relocation decisions.
- The dynamics of offshoring and backshoring in the German automotive industry.
- The impact of relocation activities on the German labor market.
- The role of cost pressures and international competition in driving relocation decisions.
- Analysis of existing industrial location and foreign investment theories in relation to observed trends.
- Evaluation of the cost-benefit analysis of offshoring and its contribution to overall competitiveness.
Chapter Summaries
1. Introduction: This introductory chapter sets the stage for the thesis, outlining the motivation behind the research and its objectives. It highlights the significant role of international location advantages in the German automotive industry's response to domestic market stagnation and global competition. The chapter establishes the context for exploring offshoring and backshoring activities as dynamic strategies rather than static, one-way processes, emphasizing the need to understand the complex interplay of economic and strategic factors influencing these decisions.
2. Theoretical Considerations: This chapter provides a comprehensive review of relevant theoretical frameworks, including industrial location theories (Weber, behaviouristic/institutional approaches, Kinkel's holistic model, Porter's competitive advantage model) and international foreign investment theories (historical development, classical/neoclassical, Hymer's monopolistic approach, Vernon's product life cycle, Knickerbocker's theory, internalization theory, and Dunning's eclectic framework). The chapter lays the groundwork for analyzing the empirical findings by providing a robust theoretical lens through which to interpret the observed patterns of offshoring and backshoring in the German automotive industry. The synthesis of these diverse theories offers a nuanced understanding of the factors driving location decisions within the global automotive landscape.
Keywords
Offshoring, Backshoring, German Automotive Industry, International Location Advantages, Foreign Direct Investment, Labor Market Impact, Cost Pressures, Global Competition, Industrial Location Theory, International Product Life Cycle.
FAQ: Comprehensive Language Preview on Offshoring and Backshoring in the German Automotive Industry
What is the main topic of this research?
This research investigates the scope and scale of offshoring and backshoring activities within the German automotive industry and their impact on the domestic labor market. It analyzes the trends and motivations behind these relocation decisions using a questionnaire survey of over two hundred responses.
What are the key themes explored in this research?
The key themes include the dynamics of offshoring and backshoring in the German automotive industry; the impact of relocation activities on the German labor market; the role of cost pressures and international competition in driving relocation decisions; the analysis of existing industrial location and foreign investment theories in relation to observed trends; and the evaluation of the cost-benefit analysis of offshoring and its contribution to overall competitiveness.
What theoretical frameworks are used in this research?
The research draws upon a comprehensive review of relevant theoretical frameworks, including industrial location theories (Weber, behaviouristic/institutional approaches, Kinkel's holistic model, Porter's competitive advantage model) and international foreign investment theories (historical development, classical/neoclassical, Hymer's monopolistic approach, Vernon's product life cycle, Knickerbocker's theory, internalization theory, and Dunning's eclectic framework).
What is the structure of the research project?
The research is structured into chapters. Chapter 1 provides an introduction, outlining the motivation and objectives of the research. Chapter 2 delves into the theoretical considerations, reviewing relevant industrial location and foreign investment theories. Further chapters (not detailed in this preview) would likely present the methodology, empirical findings, analysis, and conclusions.
What is the methodology used in this research?
The research utilizes a questionnaire survey with over two hundred responses to analyze the trends and motivations behind offshoring and backshoring decisions in the German automotive industry.
What are the key words associated with this research?
Key words include: Offshoring, Backshoring, German Automotive Industry, International Location Advantages, Foreign Direct Investment, Labor Market Impact, Cost Pressures, Global Competition, Industrial Location Theory, International Product Life Cycle.
What is the overall goal of this research?
The overall goal is to understand the scope, scale, and impact of offshoring and backshoring activities within the German automotive industry, providing insights into the complex interplay of economic and strategic factors influencing these decisions and their effects on the German labor market.
- Citar trabajo
- Dr. Rüdiger Holz (Autor), 2009, An investigation into offshoring and backshoring in the German automotive industry, Múnich, GRIN Verlag, https://www.grin.com/document/164330
