in the 1960's there were nine major auto makers. In 1990 the number rose to nineteen auto makers. Why did more countries start producing aoutmobiles?
because cars became popular and a better source of transportation
-PERSON
First, the market for new cars grew terrifically as more and more people in the world were able to afford cars.
Second, other countries wanted in on the huge profitablility for selling cars to the world's expanding population.
To understand why more countries started producing automobiles in the 1990s, we need to look at the historical and economic factors that contributed to this increase. Here are a few key reasons:
1. Globalization: The 1990s marked a period of increased globalization, where trade barriers between countries were reduced and international markets became more accessible. This allowed automobile manufacturers from different countries to expand their operations globally and enter new markets.
2. Economic Development: Many countries experienced economic growth and development in the 1990s. As a result, they had a larger consumer base with increased purchasing power, which stimulated the demand for automobiles. These countries recognized the economic benefits of having a domestic automobile industry to meet this growing demand.
3. Technological Advancements: The 1990s witnessed significant advancements in automotive technology, such as improved manufacturing processes, efficiency, and safety features. These advancements made it easier and more cost-effective for countries to establish their own automobile manufacturing capabilities.
4. Government Policies and Incentives: Many governments implemented policies and provided incentives to encourage domestic automobile production. These policies included tax breaks, subsidies, and favorable regulations aimed at attracting foreign investments and promoting local manufacturing.
5. Competitive Advantage: Some countries had specific advantages that made them attractive locations for automobile production. These included access to natural resources (such as raw materials needed for manufacturing), skilled labor, and favorable geographic locations for trade.
6. Market Differentiation: To capture a larger share of the automotive market, countries sought to differentiate their products from those of established manufacturers. Producing automobiles locally allowed them to cater to the specific needs and preferences of their domestic consumers, thereby gaining a competitive edge.
It's important to note that these factors may vary from country to country, and other elements not mentioned here could also have played a role in the increase in automobile production by different countries in the 1990s.