Toyota is a well-known automobile manufacturing company. They became popular
because of the international business strategy approach they took. Toyota had to focus on the
level of pressure for cost reduction and the pressure for loc
6). How successful is the international business of your company in the selected host country?
Using findings from Questions 1-5 you should summarize the relative success of business in
that country in terms of
a. market share position amongst t
BY: John Cowher
Starting a Business
International Business Chapter 1
Globalization-trend toward greater economic, cultural, political, and technological interdependence
among national institutions and economies
Globalization of markets-convergence in buyer preferences in markets around the
Locasl production moves abroad, apple moved to China during the maruting stage.
They are highest in innovating country
John h. Dunning 1980
Are they specific resources in that country that would give it location advdantge
Quick Study 1
Q: What are some political reasons why governments intervene in trade? Explain the role of national security
Q: Identify the main economic motives for government trade intervention. What are the drawbacks of each
A. Which type of economic system do you observe in the country? Provide necessary evidence.
B. Based on the economic development indicators discussed in the chapter would you classify
the country as a) developed economy, b) developing e
Company Introduction Toyota Motor Corporation
Toyoda invented the Toyoda Wooden Hand loom in 1890 in Japan.
He invented the Toyoda Model G Automatic loom in 1924.
He established the Toyoda Automatic Loom Works (now Toyota Industrie
Classifying Cultures Using Hofstedes Framework:
China scored low on uncertainty avoidance with 30 from the Hofstede Framework. When
scored low, this means China is very adaptable and more open to risk associated with changing
Economic Analysis of China:
1. China has a socialist economic system. However, nowadays, the economic system in China is
not strictly socialist as it once was. Rather, it is a kind of mixed economic system.
2. China is a developing nation. The growth in G
Some national subcultures that exist within China include Baifumei, Diaosi, Gaofushuai, Dama,
Tuhao, Shamate, Luchabiao and the Ziganwu.
Components of culture:
Chinese aesthetics have varied over the countrys long history. Mo
Key Opportunities and Threats of Toyota Entering the Chinese Market
1. China is an emerging market, gaining more attention in the automotive
industry (hybrid and electric vehicles thrive here and Toyota is the maker
of the very popular Priu
Political/Legal Analysis of China:
China is currently under a Communist State, meaning all industries are controlled and owned by
the government. The Communist Party of China uses a Provincial Peoples Congress, where leaders are
chosen by voters of a regi
Trade Policy of China:
Chinas top Imports include electronic equipment which makes up the majority of imported good at
21.8 percent, valued at $382 billion. Oil accounts for 17.8 percent of total trade, costing $311.9 billion.
Medical and technical equipm
Toyotas Mode of Entry into China
Toyota tried to invest in China in the 1980s but was rejected.
In 2000, the Chinese government (the Ministry of Foreign Trade and Economic
cooperation) allowed a joint venture between Toyota and Chinese automaker FAW
Success of Toyota in China
In the Chinese auto market, the percentage of market shares breaks down as follows: 44%
produced by domestic companies (around 12 companies) and the other 56% produced by joint
ventures with foreign car makers: 10% Volkswagen, 9
Free trade- the pattern of imports and exports that occurs in the absence of trade barriers
Why do governments intervene in Trade?
1. Political motives
o Sometimes, governments intervene in trade to achieve political motives.
o Lawmakers often t