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By: Cicely K. Leblanc
General Motors sold some 2,000,000 car in a foreign country this year, a drastic enhancement, nevertheless recognize that the world-wide car market is heating up, with other new market entrants. For example Ethiopia will now be selling a 5-speed sedan, 4-cyllinder, for only $16,000 which will be made with Chinese parts. Other companies will have a very difficult time being able to compete, primarily bearing in mind that Ethiopia has a huge import tax of 1.5 times the cost. Many markets like this are starting to operate around the world-wide and global auto-makers are business creating coalition and making deals to control labor costs and tap into these markets. Presently, in Ethiopia, the people drive second hand motorcars mainly from Europe. Now they will be able to drive new motorcars, which are made in their own country. It seems that although General Motors is making inroads and selling more cars in foreign markets, that there is fairly a bit of competition out there in the overall world-wide market. There is a rush to make the motorcars relatively low in price in order that the masses of people can purchase them. The issue is would a middle class American purchase an Ethiopia car made with Chinese parts? That might not be as far off as you think. The first Chinese car dealership is starting in New Jersey in 2008.
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