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ion tax' and set up the localization office which was responsible to 'carry out a straightforward import-substitution policy' for the imports in auto sector even from other Chinese regions. Also, the localization office checked out the list of imported components and their domestic firms which are capable of produce them successfully, then it provided a suitable investment capital as well as managing the firms' relationship with the main assembler plant. (Thun, 2004)

Apart from the local government programs, SAIC had its own way to support the Shanghai auto sector, however in some areas their activities overlapped. SAIC with a hierarchical structure were able to have an accurate control over production, especially over the financial parts. Moreover, SAIC provided learning programs and training and other activities to ensure about the management knowledge and skills during the development process. These all happened while other two cities failed in building up a local supply chain.

Despite of all attempts, even Shanghai auto sector is far from international standards in terms of quality and prices. The Chinese auto sector needs more time to catch up as a competitive country in this sector. Thun (2004) has mentioned the overlap of local government with national government as the main reason for an inefficient performance of auto sector in China. It might be also because of the decentralize system in decision making which cause the system would not be able to coordinate well and efficient. The governmental support can not be continuing further as China has joined WTO and the central government should think about other strategies to aid the auto sectors; giving more freedom to local government to choose their economical strategy and to assembler to choose their supplier from any where but more efficient, might be a good start.

Iranian auto industry case

Economic overview

Iran is a country whose economy is mostly state controlled and is highly dependent on oil and related industries such as petrochemicals and petroleum. Most economic activity is controlled by the state and private sector activity is typically small-scale - workshops, farming, and services. However the high oil price in recent years built up a great amount of exchange reserves for the country ($30 billion) and the market reform has started to improve the economy since 1990, but the progress in economic and market reform plans was limited and it has not eased economic hardship such as high unemployment and inflation. Despite of the GDP annual growth rate from 5% in 2000 to 6.5% in 2004 ($7,700 GDP per capital), inflation has increased from 13% to 15.5% and there is still 11.2% unemployment rate. (World Development Indicators database, August 2005 , The World Bank Group report) Although in the Middle-East region, Iran is known as one of the highest GDP growing and it is more industrialized than most of other countries in the region.

According to the World Factbook information (Table 3), in terms of GDP growth, Iran is standing in the third place (excluding Iraq due to its unusual circumstances) after Qatar and Turkey, while Iran GDP-per Capital is even more than Turkey. 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。