Organizations often face number of challenges when expanding globally. Some of the challenges are unique to the particular industries while others affect all global organizations. However, several companies have demonstrated that it is possible to expand globally and make profits. When expanding globally, organizations often meet three main challenges. They often have managerial problems. Running global organizations is more challenging than running domestic organizations. Managers operating internationally must have the skills to effectively perform tasks such as managing people from different cultures, understanding the laws and regulations governing international trade and communicating (Krueger, 2012). Next, they face stiff competition. In the last 30 years, many companies in the US have been relocated to developing countries. Subsequently, competition is rising in the countries. Civil wars are consequences of stiff competition for resources. To maintain political stability and encourage local investment, host countries often provide subsidies to domestic traders. This often increases competition against products produced by foreign investors. Another challenge facing global trade is the difficulty to maintain connections with the host states. Public companies have various shareholders from different countries. Shareholders of global companies always make decision in the interest of their companies. Certain decision often conflict with the needs of the host. Whenever such conflicts arise, foreign investors risk losing the rights to operate in such states (Krueger, 2012). Auto Parts US might encounter these challenges during its operations and should work towards ensuring that it limits the consequences of the risks involved. Additionally, Auto Parts US might also encounter some unique challenges. Currently, the global auto market is experiencing a shift in the production and supply of automobiles. Both developed and developing counties manufacture and assemble auto parts. As a result, companies are working towards reducing costs by balancing just in time delivery with global sourcing (Krueger, 2012). Besides, the company faces the risk of stiff competition from established companies. There are auto supply companies operating in the US and abroad that already have control of the market. A Chinese largest auto parts marker recently purchased A123 Systems, a leading U.S maker of batteries ((Reuters, 2013). Companies such as A123 Systems are established and control the international auto parts market. Therefore, Auto Parts US has a difficult task strategizing to have a competitive advantage. Further, the global auto business is highly risky for the young company. The company has built a pool of reliable connections. Moreover, the company does not have a clear understanding of all stakeholders that it is going to deal with. Currently, tracking fraud cases across international borders is challenging and the company must understand how to manage and go about such issues in the best manners possible. Therefore, there are a number of challenges that an auto company planning to expand its operations and production globally may encounter prior to achieving success. Auto Parts US must be prepared to overcome the limitations (