Trade Agreements, Foreign Trade Zones and Competitiveness

Trade barriers will be usually defined as the restriction which is being imposed by the government on the free international exchange of the goods and services. The companies’ major country’s specific trade barriers which are geared toward foreign MNCs entering the market are services barriers ( audio visual services, insurance services, etc.), investment barriers, etc. (riwold, 2011)

Toyota is an automobile manufacturer industry; this company holds impressive global presence. The company is exporting its product and services in many different countries of the world thus facing some trade barriers as well. The world trade organisation set the business policies of different business which relates to the import and export of the product and services. The major trade barriers of Toyota are

· Tariffs

· Non-tariff barriers to trade

· Import license

· Export license

· Import quotas

· Currency devaluation

· Trade restriction.

These are the common trade barriers for Toyota. (riwold, 2011)

Trade policies are providing the standard procedures of setting the tariffs for all countries, Toyota is trying to participate in the multilateral tariffs reduction plans and is being involved in the various disputes with the United stated and even with Europe.

Usually, trade barriers of Toyota are the combination of the confirmatory requirements which are requested abroad and involve weak inspection or certification procedure at home. Thus the effect of these trade barriers in the companies is highly uneven.

Another negative implication of the trade barriers for Toyota is they are resulting in the limited choice of the product and thus must be forcing customers for paying more price and also to accept inferior quality. These trade policies are becoming a problem for Toyota and are affecting the business. (arham, 2016)

The government of Japan is always concerned about the international trade policy and thus implicating strict control over the international commerce and the foreign exchange allocation. Due to the high tariff rates many of the automobile industries are not able to enter the international market and does not get a chance to expand their business, this in result affects the automobile industry as a whole. These trade barriers hinder the industry of automobiles in the international market for trade. (arham, 2016)

The trade barriers for Toyota and their implication will be defined in the chart shown bellow.

(Cain, 2009)

The chart shown above is showing the effect of the trade barriers with the visual presentation of pie charts. Most of the trade of Toyota is being affected by the high tariff rates. The high tariff rates are not only affecting the company individually but also the automobile industry and also the consumers as well. As consumers are paying more for even the inferior product. They pay more for getting the cars in their home country due to high tariffs rates. (Cain, 2009)

TARIFFS

B: quote on your particular industry.

Institutionalisation - Standardisation is about recognising an ideal approach to playing out a procedure from a quality and profitability point of view and setting up systems to amplify adherence to the Standardised Work. These instruments will incorporate documentation, in addition to self-checks and reviews, (for example, Gemba Walk and so on) to screen adherence.

C: quote on your particular industry.

The fall in assembling utilisation is not, be that as it may, adequate to clarify the majority of the decline in UK fabricating yield since 1980. In that period the UK producing yield fell from 25% to 13% of GDP, a far more prominent fall than the 26% to 20% fall in the utilisation of made products. By and by, the fall in utilisation clarifies a greater part (54%) of the fall in yield. We can see the relationship between Britain's salary, and utilisation and generation of made merchandise in Figure 1, which gives data per individual, in real terms, for the period 1980-2008.

RFERENCING arham, w. (2016, 7 8). Implication of trade policy. Retrieved 2 14, 2017, from infoplease.com: http://www.infoplease.com/cig/economics/barriers-international-trade.html Cain, T. (2009, 8 7). Toyota Motor Corporation Sales Figures. Retrieved 2 14, 2017, from goodcarbadcar.net: http://www.goodcarbadcar.net/2012/10/toyota-motor-corporation-sales-figures.html R, s. (2009, 8 9). Tarriffs affecting Toyota. Retrieved 2 14, 2017, from wto.org: https://www.wto.org/english/thewto_e/20y_e/wto_20_brochure_e.pdf Griswold, c. (2011, 9 8). Toyota loses global sales crown. Retrieved 2 14, 2017, from autonews.com: http://www.autonews.com/article/20170130/COPY01/301309932/toyota-loses-global-sales-crown-to-vw-as-u-s-trade-barriers-loom

Trade Barriers for toyota