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Learning Points - Technology Transfer & the Development of the Automobile Industry in South Africa

In: Computers and Technology

Submitted By yaham911
Words 772
Pages 4
1. What are the major impacts of Globalization on the structure of the Industry?

a. Increase in the level of International competition.
b. Larger share of Domestic market are imported
c. Tremendous growth in Exports due to MIDP import-export complementation arrangements (tax set-off policy)
d. Increased specialization which is very important in scale-intensive production sectors e. Access to cutting-edge technology for domestic firms through partnership with foreign firms in order to ease access to foreign markets.

2. How the era of heavy protection supported and distracted the technological development in South Africa?

a. Demand to make adjustments to the products to adopt them to local needs encouraged the product and process innovations.
b. High level of standardization – Atlantis Diesel Engines (ADE).
c. The long period of protection enabled the domestic industry to acquire key manufacturing competencies in terms of production experience and quality.
d. Heavy government backing in terms of R&D spending and investments.
e. Created complex issues on quality standards and supplier capability.
f. Negative impact on efficiency.
g. Falling behind in terms of innovation makes it difficult to penetrate international market. 3. How the era of liberalization effected the development industry through technology transfer? a. Greater openness leads to expansion of international linkages including greater
FDIs.
i. The role that foreign links may play in enabling existing local firms upgrade their technology. ii. Impact of increasing internationalization and foreign ownership on the capabilities of domestic industry.
b. In seeking to optimize their positions, domestic suppliers may seek out a foreign partner who can provide the technology necessary to supply export markets and meet the increasingly demanding requirements of domestic

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