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Unformatted text preview: Lauren Lawson Econ 452- Glass November 29, 2011 Toyota Going Global Toyota Motor Corporation, known to the general public as Toyota or TMC, is a multinational corporation whose main objective is automobile manufacturing and sales. Founded in 1937 by Kiichiro Toyoda and headquartered in Toyota, Aichi, Japan, Toyota Motor Corporation is the worlds largest automobile manufacturer by production and employs roughly 317,734 people worldwide. Toyotas first expansion into the United States was established in 1986 as a manufacturing factory in Georgetown, Kentucky. Toyotas decision to invest directly in the United States benefitted them greatly as their Kentucky factory is the largest manufacturing facility outside of Japan- the companys headquarters. It was also rated the eighth most efficient auto plant in North America by the Harbor Consulting firm. As of today, Toyota has factories all over the United States including Alabama, Missouri, Texas, North Carolina, Illinois, California, etc. Their direct investment in U.S. dealers and factories totals $18 billion with 1,506 Toyota, Scion and Lexus dealers. Toyota vehicle sales in the U.S. are about 1,763,595 totaling $24.9 billion in sales. The factors influencing the companys investment decision are the factors which cause most multinational corporations to go global. Some of these reasons include production price predictability and the ability to sell products at lower cost. The business was thriving elsewhere in the world and the demand for vehicles in the U.S. was high. By establishing a plant in North America, Toyota was able to minimize many of the costs associated with international trade, one of those being exchange rates. With exchange rates fluctuating quite often, a U.S.-based plant allowed them to avoid the rise exchange rates fluctuating quite often, a U....
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- Fall '06