Enviromental Factors

1015 Words5 Pages
• Analyze the influence of global economic interdependence and the effect of trade practices and agreements.
The global economic interdependence for corporate Toyota is very important in order to increase revenue sales by focusing on both purchasing vehicle parts and materials from specific countries and as well as in increasing market share in each region in where they do business. Toyota must also consider the targeting of specific groups and classes of people within a country because those groups may be dependent on the success of Toyota. The effect of trade practices and agreements play a major role in Toyota’s strategies and operations within the boundaries of countries. For instance, Toyota must consider different trade barriers,
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Welcoming governments can open doors for Toyota to expand within their country and this is a major reason Toyota finds themselves in 26 different countries.
• Analyze the influence of Foreign Corrupt Practices Act of 1977, as well as the influence of local, national, and international legislation.

The Foreign Corrupt Practices Act (FCPA) of 1977 poses a unique dilemma for Toyota which is not a U.S. based company but falls under the FCPA which prohibits foreign companies listed on US capital markets from paying bribes to foreign officials to obtain business (Norton, 2006). This forces Toyota into following the FCPA whether they would consider bribery or not. There are countries where bribery is considered ethical and a common business practice. Toyota’s business expansion and marketing is influenced by this international legislation.
• Explain the effect of technology.

Toyota’s technology has helped develop state of the art facilities, raise the barrier of entry, increase customer relations, and expand training programs. Technology doesn’t have many downsides for an organization of this size except for the cost of implementing new systems, correcting defective computer parts in sold cars, and disclosing company information. For example, unless a potential customer were to look online at Toyota’s website, they would not know Toyota had another recall August 26, 2010 involving approximately
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