ABSTRACT
The formation arid development of a motor vehicle sector can be a significant contributing factor to the economic health of a country and make possible a role in world trade. This is true for nations with emerging economies as well as for those with mature markets. Often, the greater the role a country's motor vehicle sector plays in the national economy, the more numerous the government policies which directly or indirectly affect the industry. With increased globalization of the motor vehicle industry, government policies in any one country often have profound impacts on motor vehicle producers and consumers in other countries as well. The chapter addresses the issues in the context of the US motor vehicle sector in general and with regard to developments in US-Mexico automotive trade. Industrial policies as well as company strategies in third countries have had a significant impact on the motor vehicle sectors in the United States and Mexico.
