when analysis we can say that toyota can expansion market cause the process of globalization. This process implies the economic integration of countries, elimination of financial barriers between countries and the promotion of free trade. The process of globalization involves practically all countries and affects all largest companies. In fact, directly or indirectly globalization affects all countries, companies and even all individuals. In this respect, Toyota is not an exception. In such a situation, the global expansion of Toyota became a reality because the company has managed to develop an effective production chain in which the cooperation between its plants situated in developed and developing countries is highly productive. No wonder that nowadays the production chain of Toyota is spread worldwide and it is possible to estimate that Toyota is really a global company which has its plants in many countries of the world, while there are even more countries where its production is sold by official dealers.
The process of globalization substantially facilitates Toyota entering new markets, especially those of developing countries. In fact, in the past, there existed numerous financial barriers which prevented Toyota from effective and successful entering markets of other countries, which had its own car manufacturing industry or where competitors had already had a well-developed network of production (Peters, 2002). In such a situation, the company was forced to localize the production in the markets Toyota wanted to enter. In such a way the company could overcome existing financial barriers.
Nowadays, in the epoch of free trade that is actually the “engine” of the process of globalization, financial barriers have vanished or, at least, their impact on the economic relations between countries has been minimized. As a result, currently, Toyota can easily enter new markets and, in such a situation, the company needs a well-developed production chain simply to be represented in a possibly larger number of countries since, because of the geographical distance, it is not always possible to sell its products at adequate price compared to that of competitors (Gitlow, 1997). At the same time, globalization and the elimination of financial barriers resulted in the larger opportunities to develop closer cooperation between different units of Toyota worldwide. Practically, this means that a company can choose relatively freely where and what it can manufacture since, being not bound to the demands of the local fiscal legislation as much as it used to be in the past, Toyota can unite the efforts of its plants situated in different countries to manufacture its cars. As a result, the company can adapt plants to the demands of the local market. For instance, Toyota successfully developed the production of such cars as Toyota Corolla and Toyota Yaris in Europe, while in the US it successfully focused on the production of SUV and 4x4 which were traditionally popular their.
Moreover, nowadays, the company can provide the supply of its products from different countries more effective, due to the lack of financial barriers, to make the manufacturing or assembling of cars in a particular country or region less expensive and more profitable.
when analysis we can say that toyota can expansion market cause the process of globalization. This process implies the economic integration of countries, elimination of financial barriers between countries and the promotion of free trade. The process of globalization involves practically all countries and affects all largest companies. In fact, directly or indirectly globalization affects all countries, companies and even all individuals. In this respect, Toyota is not an exception. In such a situation, the global expansion of Toyota became a reality because the company has managed to develop an effective production chain in which the cooperation between its plants situated in developed and developing countries is highly productive. No wonder that nowadays the production chain of Toyota is spread worldwide and it is possible to estimate that Toyota is really a global company which has its plants in many countries of the world, while there are even more countries where its production is sold by official dealers.
The process of globalization substantially facilitates Toyota entering new markets, especially those of developing countries. In fact, in the past, there existed numerous financial barriers which prevented Toyota from effective and successful entering markets of other countries, which had its own car manufacturing industry or where competitors had already had a well-developed network of production (Peters, 2002). In such a situation, the company was forced to localize the production in the markets Toyota wanted to enter. In such a way the company could overcome existing financial barriers.
Nowadays, in the epoch of free trade that is actually the “engine” of the process of globalization, financial barriers have vanished or, at least, their impact on the economic relations between countries has been minimized. As a result, currently, Toyota can easily enter new markets and, in such a situation, the company needs a well-developed production chain simply to be represented in a possibly larger number of countries since, because of the geographical distance, it is not always possible to sell its products at adequate price compared to that of competitors (Gitlow, 1997). At the same time, globalization and the elimination of financial barriers resulted in the larger opportunities to develop closer cooperation between different units of Toyota worldwide. Practically, this means that a company can choose relatively freely where and what it can manufacture since, being not bound to the demands of the local fiscal legislation as much as it used to be in the past, Toyota can unite the efforts of its plants situated in different countries to manufacture its cars. As a result, the company can adapt plants to the demands of the local market. For instance, Toyota successfully developed the production of such cars as Toyota Corolla and Toyota Yaris in Europe, while in the US it successfully focused on the production of SUV and 4x4 which were traditionally popular their.
Moreover, nowadays, the company can provide the supply of its products from different countries more effective, due to the lack of financial barriers, to make the manufacturing or assembling of cars in a particular country or region less expensive and more profitable.
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