Henry Ford - International Business

International Business

Ford's philosophy was one of economic independence for the United States. His River Rouge Plant became the world's largest industrial complex, pursuing vertical integration to such an extent that it could produce its own steel. Ford's goal was to produce a vehicle from scratch without reliance on foreign trade. He believed in the global expansion of his company. He believed that international trade and cooperation led to international peace, and he used the assembly line process and production of the Model T to demonstrate it.

He opened Ford assembly plants in Britain and Canada in 1911, and soon became the biggest automotive producer in those countries. In 1912, Ford cooperated with Giovanni Agnelli of Fiat to launch the first Italian automotive assembly plants. The first plants in Germany were built in the 1920s with the encouragement of Herbert Hoover and the Commerce Department, which agreed with Ford's theory that international trade was essential to world peace. In the 1920s, Ford also opened plants in Australia, India, and France, and by 1929, he had successful dealerships on six continents. Ford experimented with a commercial rubber plantation in the Amazon jungle called Fordlândia; it was one of his few failures. In 1929, Ford accepted Joseph Stalin's invitation to build a model plant (NNAZ, today GAZ) at Gorky, a city now known under its historical name Nizhny Novgorod. He sent American engineers and technicians to the Soviet Union to help set it up, including future labor leader Walter Reuther.

The Ford Motor Company had the policy of doing business in any nation where the United States had diplomatic relations. It set up numerous subsidiaries that sold cars and trucks and sometimes assembled them:

• Ford of Australia
• Ford of Britain
• Ford of Argentina
• Ford of Brazil
• Ford of Canada
• Ford of Europe
• Ford India
• Ford South Africa
• Ford Mexico
• Ford Philippines

By 1932, Ford was manufacturing one third of all the world’s automobiles. Ford's image transfixed Europeans, especially the Germans, arousing the "fear of some, the infatuation of others, and the fascination among all". Germans who discussed "Fordism" often believed that it represented something quintessentially American. They saw the size, tempo, standardization, and philosophy of production demonstrated at the Ford Works as a national service—an "American thing" that represented the culture of United States. Both supporters and critics insisted that Fordism epitomized American capitalist development, and that the auto industry was the key to understanding economic and social relations in the United States. As one German explained, "Automobiles have so completely changed the American's mode of life that today one can hardly imagine being without a car. It is difficult to remember what life was like before Mr. Ford began preaching his doctrine of salvation". For many Germans, Ford embodied the essence of successful Americanism.

In My Life and Work, Ford predicted that if greed, racism, and short-sightedness could be overcome, then economic and technological development throughout the world would progress to the point that international trade would no longer be based on (what today would be called) colonial or neocolonial models and would truly benefit all peoples. His ideas in this passage were vague, but they were idealistic.