Globalization has changed the world and made it economically interconnected.

Globalization has changed the world and made it economically interconnected. So a firm can have its headquarters in the US while manufacturing facilities in China and it's back-office in India. This has enabled firms to take advantage of lower labor costs and increase production. Further, such a situation has also created wealth and China has seen its rise from a poor country to the second biggest economy in the world. The increase in wealth and job opportunities created by such huge industrial complexes consequently given rise to urbanization. An increase in the population of cities and the rise in wealth has created a demand for automobiles. In Asian countries, a car is considered a status symbol but above that poor transportation facilities have also created a huge demand for 2-wheeler and 4-wheeler automobiles in the emerging economies. The emerging economies such as India and Brazil do not have proper infrastructure and poor management at the strategic level means the urban cities are clogged with pollution from the vehicles and roads are filled with automobiles. The government has a major role to play in this situation. One of the first steps is to create a network of an efficient public transport system. The evidence suggests that many people in Indian cities forced to used automobiles because those cities don't have any public mass transportation system. Such a transportation system should be financed by raising taxes on fossil fuel usage and also by raising the cost of ownership of vehicles through parking charges and annual tax. The government should also increase the interest rate on vehcle loan by introducing a premium such as 'Green Premium'.