This article introduces the Dynamic Diversification-Coordination (DDC) model as
a new model for the explanation of the global expansion of a firm, correcting the
flaws of and complementing the previous indices and models. The DDC model is
employed to measure the status and the degree of global expansion of firms in
the motor industry and analyze the strategic motivation and the adequacy of
Hyundai Motor's investment in Alabama, U.S.
The results show that Hyundai Motor has lower transnationality in the production
function than the marketing function, and in the production function, the
level of Production Coordination is relatively low compared with Production
Diversification. The application of the GCP theory to the results of the DDC model
analysis clearly proves that the strategic motivation of Hyundai Motor's investment
in the United States is to enhance Production Coordination by efficient utilization
of county portfolio.