LOG301CAMOD3

LOG301CAMOD3
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INTRODUCTION
The term automotive industry is perhaps one of the world’s most important industry in the world as it is responsible for designing, manufacturing, marketing, developing and selling motor vehicles (Brinkley, 2003). The history of automobile dates as far back as the early 18th Century where the first steam powered automobiles capable of human transport was developed. Electrical cars then followed with the turn of the 20th Century, briefly disappeared then reappeared again with the turn of the 21st Century (McAlinden & Fulton, 2001). By enabling individuals to commute long distances for personal activities such as entertainment, work and shopping, the auto industry has encouraged as well as enhanced the development of an extensive road system that has resulted in growth of shopping centers and suburbs around major cities (Maxton & Wormald, 2004). The industry has also played a huge role in the growth of ancillary industries that incorporate oil and travel businesses (McAlinden & Fulton, 2001).
An estimated 36% of all United States residents reside in the South thus making it the country’s most populous area. For the past two generations, the South has experienced great transformations for instance a boom in laziness, unemployment and living off Northerners’ taxes (Brinkley, 2003). In the recent past, southern US have apparently become one of the world’s attractive locations for the auto industry. Also known as the South, this region constitutes a large distinctive area in southern-eastern and south central United States boasting unique historic and cultural heritage (Maxton & Wormald, 2004).
ESSAY
Factors determining the attractiveness of a location in terms of auto industry
During the late 1980s, it was observed that majority of high profile automotive assembly facilities as well as their associated jobs started locating in the southern portion of the United States (Brinkley, 2003). A few factors can be attributed to what made the South appear more attractive in terms of auto industry as compared to the rest of the United States. A location can be considered an attractive location for carrying out business activities if there is availability and easy access of raw materials (McAlinden & Fulton, 2001). The auto industry incorporates heavy and bulky products and therefore it would not only be costly but also cumbersome for a factory to be transporting its raw materials from one point to another. The South is well equipped with potential geographical location as well as steel needed for the manufacturing of the vehicles (Maxton & Wormald, 2004). It is well known that majority of automobile manufacturers prefer building vehicles close to their primary markets and the South has presented the perfect locations for the industry as more regional assembly plants have increased due to the increased population (Maxton & Wormald, 2004).
In addition...