American products vs foreign products Essay Example | Topics and Well Written Essays - 500 words

American products vs foreign products - Essay Example About 63 million light trucks and cars were produced in 2005 all over the world. of these, 11524000 were produced by America, 5543000 were produced by Germany, and 10064000 were produced by Japan . It may come as a surprise to many but it is true that a lot of vehicles made in America are designated like â€Å"foreign† whereas a lot of vehicles produced in Canada or Mexico are considered â€Å"domestic†. This can fundamentally be attributed to the requirement of the federal regulations of making a domestic vehicle with a minimum of 75 per cent of the domestic parts. Therefore, manufacturers in America frequently forward the parts to Canada or Mexico in order to produce the cars, though they hold the status of domestic cars by law. On the other hand, Nissan, Honda, Hyundai, Toyota, Mercedes-Benz, and BMW produce their cars in America making use of American plants aided by American-based research and development facilities and with American workers, and yet, they are cons idered as foreign since the percentage of domestic parts in them is less than 75. At comparable equipment and size, American cars save the buyer significant amount of money as compared to the Japanese car. However, when the comparison is made with respect to the whole life of car, Japanese cars prove much more cost effective than the American cars.