IMPACT OF THE AUTOMOBILE ON THE ECONOMY

Automobile industry has great impact to an economy, whether  to like or not, car industry makes the economy of a nation. The United States, Japan, Korea, United Kingdom, France, Italy, Sweden and Germany, are among nations that have harvest the positive impact of car industry to their economy, that without it, there can be no economic power by this means.

"Motor vehicle exports are essential to maintaining the balance of international trade. The automotive industry has become a vital element in the economy of industrialized nations: motor vehicle production and sales are one of the major indicators of the status of the economy in those countries. The effect of motor vehicle manufacturing on other industries is very considerable as well. Almost one-fifth of US steel production and nearly three-fifths of its rubber output go to the automotive industry, which is also the largest single consumer of machine tools. Moreover, the special requirements of automotive mass production have had a big influence on the design and development of highly specialized machine tools and have encouraged technological advances in petroleum refining, steel making, paint and plate-glass manufacturing, and other industrial processes."

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In the Philippines, the car industry is just being shunned away to  become a major industry that would impact the economy greatly. This car manufacturing  will spur trade and commerce in the country, a generator of an economy that must be understood by our leaders.

Vietnam is already initiating its own car industry, that in next year or so, they will be producing their own cars and trucks, and eventually save foreign reserves in that sense.

In our setting, the jeepney modernization program is the most and apropos of the situation with  regard to this industry. Instead of sourcing new and modern jeepneys for our mass transport system, we should initiate now our own car industry for this requirement int he jeepney modernization. If by the cause of of this jeepney program of the government, this industry should now fly.

In conclusion, unless we initiate our car industry, and in the spirit of the jeepney program today, our economy will not get better, and the expense it will cause to the US dollar reserve, further inflation and depletion of this precious reserve may then result bad for the economy.

IMPACT OF THE AUTOMOBILE ON THE ECONOMY