The twentieth century was the period in US history when Americans discovered their passion for cars. In the words of a historian, “The development of the motor vehicle revolutionized American systems of production and patterns of consumption … in 2000 the nation had more motor vehicles than licensed drivers” (Rubenstein, 2001, p.1). It was Henry Ford and his Ford Model T that initiated the revolution. Afterwards two other major companies created an oligopoly within the US automotive industry. General Motors and Chrysler were the other giants in the field of car manufacturing. This trio came to be known as the Big Three. However, in the decade of the 1980s, car manufacturers from Japan began to capture a significant slice of the market and this process dismantled the oligopoly. In the present time the US auto industry can no longer be considered an oligopoly but a highly competitive industry. In the short run this particular industry will experience stagnant growth based on two factors. First, the United States is currently in an economic slump. Secondly, there are many players in the auto industry so that the steep competition makes it difficult for all the players to increase their profit margin. However, in the long run, some of the companies will have to merge in order to strengthen their dominance on a particular market and to slash cars they are selling. Transaction Costs It has been said in the past that the United States is a melting pot of cultures. The migration of people from all over the world has created multicultural communities in various cities and suburbs in America. As a result auto dealers can no longer afford to establish a business that caters only to Caucasians. They need to make adjustments to cater to Hispanics, Asians and even those who came from the Middle East. The transaction cost also involves the need for interpreters and consultants who understand the culture of the target market. There are two strategies that must be developed to deal with this issue. First, auto dealers must maintain a multicultural workforce. The purpose is to lessen the transaction cost in paying for interpreters. Secondly, auto dealers must create a corporate culture wherein employees are eager to learn about the culture of other people. Thus, an employee with an Indian heritage will go out of his way to learn more about Chinese culture so that when a Chinese customer comes in, then he knows how to deal with this particular person. In the 21 st century another major transaction cost is linked to Information Technology. Automakers must develop websites that are not only user-friendly but also multi-lingual. In addition, automakers and auto dealers must invest in mobile commerce or the use of mobile devices to browse the Web and interact with merchants. Information Technology is seen as a cost-efficient way to do business. There are two strategies that must be developed with regards to the issue of Information Technology. First, the respective companies must hire consultants to help them develop the appropriate website that can be accessible to both personal computers and mobile devices. Secondly, the respective companies must engage their employees and clients in the development process so that the final output is a website that is highly-functional