portfolio part 2

INTERNATIONAL COMPANIES 1

INTERNATIONAL COMPANIES 2

International Business

Raju Rampersaud

American Public University

Course: BUSN601

Instructor: Dr. Barrett

Date: 03/15/2015

Toyota Motors is a company that operates in about 54 overseas manufacturing companies and operated in about 27 different countries, the Toyota vehicles are sold to almost 170 countries. The major three countries in different continents which Toyota operates are as follows; Canada with the company’s name Toyota motor manufacturing Canada Inc. (TMMC) which was started in Nov. 1988 with its main products, Matrix, RAV4, Corolla and RX350 and products approximately 579 units. Another country is France; the company’s name is Toyota motor manufacturing France S.A.S (TMMF) which was started in Jan. 2001 with its main products Yaris (vitz) and products units around 225, Hino (2006). Finally the country which Toyota operates is Kenya, the company’s name Associated Vehicles Assemblers ltd (AVA) which was started in Aug. 1977, and its main products are Land cruiser and produce approximately one unit.

These countries are all members of IMF, the World Bank, and WTO and they all follow the guidelines and rules of these international institutions, so that they can gain from the benefits of these institutions like borrowing loans and other supports, Dunkley (2000). All these countries are acting in a positive way of fighting corruption in their countries for example in France there recommendations that political parties should fight against corruption and becomes their first priority and thus goes beyond the usual symbolic reforms that are spurred by scandals. They have functioning judiciary systems which functions in favor with international treaties and eliminating corruption in the country

The three countries have embrace good governance and implemented policies and improve the regulatory environment to best align the interests of boards and also management with those of the shareholders, and to promote efficiency and effectiveness of these countries, for example Canada for example recently issued guidelines and position papers in the following corporate governance; the dual class share policy, executive compensation principles, building higher performance boards, majority voting, director compensation and also board engagement program. The other countries France and Kenya practice the same policies which help in competitive markets, property rights and eliminating corruption.

The Toyota motor company deals with manufacturing and maintains Toyota vehicles, so the products are RAV4, Vitz, Land cruiser, Matrix and other models. The Toyota company engages in the design, manufacture and sale of cars which includes the following; passenger cars, minivans, buses and trucks, as well as related parts and accessories. And these products are sold to other 170 countries in the world while some are used domestically.

The products of Toyota motor faces tariff just like any other products in different countries, it faces import quota where the quantity units on imports are limited by particular country. For example in the country Kenya in Africa uses tariff-quota where it allows import to enter the country at a low or zero tariffs up to a specific quantity, and it imposes a higher tariff on the imports above that quantity. Another example is Canada uses Government procurement to cuts the imports of large quantity like Toyota from others nations, laws and the government rules are applied to favor the local products when the government is the buyer. The country France also uses import licensing where anybody who wants to import must apply for a license, this curb the quantity imported.

Canada for example involves in a number of free multi-national free blocs excluding European Union are NAFTA (North American Free Trade Agreement), MERCOSUR AND AFTA (ASEAN Free Trade Area) which are the tree largest after EU, and these have helps Canada in many different ways for example NAFTA is most limited and is restricted in eliminating tariffs, quotas and other impediments in this country, Rugman (1990). There is no common customs or tariff agreement for imported goods and services. France is a member of EU which aims at evolving from a regional free-trade association of states into a union of political, economic and executive connections. While Kenya have trade block called COMESA (Common market for east and South Africa) which in free between these countries.

Countries when involved in multi-national liberalization will gain lots of benefits like reducing poverty, eliminate unfair trade barriers, improve food security in the country, and access too many existing privileges of world trade unions, Peet (2003). Trade between countries and also their relations will improve and these help gain any kind of support needed. The cultural knowledge which is very important to learn is how the citizens spent their lives doing, what they like doing, in general learning their lifestyles. These will help in providing the right quality and quantity of products to the particular customers.

References:

Rugman, A. M. (1990). Multinationals and Canada-United States free trade. Columbia, S.C: University of South Carolina Press.

Dunkley, G. (2000). The WTO, the Uruguay Round and globalism: A critique. London: Zed Books.

Peet, R. (2003). Unholy trinity: The IMF, World Bank, and the World Trade Organization. London: Zed Books.

In Kumar, A. (2003). World Bank literature. Minneapolis: University of Minnesota Press.

Hino, S. (2006). Inside the mind of Toyota: Management principles for enduring growth. New York, N.Y: Productivity Press.