Just like other industries such as clothing, electronics and consumer goods, the automobile industry has accelerated its foreign direct investment, cross-border trade and global production. The automotive industry has increased outsourcing and consolidated value chain activities into major supplier chains. As a result, more developed countries that serve as suppliers have increased their participation in trade and FDI. With these increased supplier capabilities, large domestic suppliers have become global suppliers and now control multinational operations. This is due to their increased ability to provide goods and services to various leading companies around the world. The automobile industry has a distinct corporate structure. This allows him to exert a lot of pressure and power over extremely small companies. Production in the automobile market is dominated by leading companies from Japan, the United States and Germany. There is no doubt that the automobile industry has had considerable effects on globalization. This article discusses the effect of the automobile industry on globalization and examines which part of the automobile industry has affected globalization. How has the automobile industry affected globalization? The automobile industry has been present on the global stage since its inception. The offshoring of automobile production began with the mass production of Henry Ford's system, which was accompanied by mass markets. American automobile manufacturers were pioneers of globalization in the 1900s. Companies such as General Motors are known for their production facilities outside the United States, a year after the company was founded. Since 1913, the automobile industry has undergone enormous changes. The automobile in the middle of paper ......Industry: motivations, methods and effects. Cambridge: International Motor Vehicle Program, Massachusetts Institute of Technology, Cambridge, MA. 2008.Print.Maxcy, George. The multinational automobile industry. New York: St. Martin's Press. 2001. PrintSturgeon, Timothy. & Memedovic, Olga. Globalization of the automobile industry: main characteristics and trends. International Journal of Technological Learning, Innovation and Development, 2009. 2, (1) http://www .cggc.duke.edu/pdfs/IJTLID_Globalizationofautoindustry_Sturgeon_2009.pdf Ulrike, Schade. 2009. Globalization and reorganization of the Japanese automobile industry. Journal of Automotive Technology and Management. http://irps.ucsd.edu/assets/033/10612.pdf Yang, Xiaohua. Globalization of the automobile industry: United States, Japan and People's Republic of China. Westport, CT: Greenwood Publishing Group 1995.