Again are we talking about single stage paint? most all cars today are clear coated so that is not a factor for the most part.
To remove it you should use a compound with a rotary and or PC with a cutting pad. I use 3M light cut for this and on most all cars that takes care of it, then polish and wax is next. There is not much to removing oxidation other than removing a top layer of paint. tehn polishing to get the luster back and wax to protect.
If you are really interested in the subject call Steve @ Poorboys World he will give you a more indepth idea of what is really happening