Toyota Mini Case Study

Why do you think Toyota had waited so long to move much of its manufacturing for european sales to Europe?

* Complex and large initial cost in expanding the manufacturing plants outside the country of origin(building a factory is costly in term of researches and investigations for example in choosing which country and city + local government and Japanese government regulations)

* Argument on moving the plant to local can solve the problem of euro and yen but also risen the problems on tax rate?(compare the Japanese tax rate and eu) Workforce payments?(do some research)? Large cash flow needed

* Car manufacture benefit from the economies of scale thus Toyota resists the movements of its manufacturing into the local and regional markets. Affecting the average unit cost.

Compare against the import and export duties

* The quota and tariff that had protected domestic car industries since the 1970’s, only removed regulation in Jan 1993 in order to create a “single European Market”

* Thus Toyota not be able to supply enough cars to Europe due to quotas restrictions the number of cars that could be manufactured. Then is there necessary move the manufacture to local since it can no longer benefit from economies of scale

* In 1992, they were able to overcome this by moving the manufacture of the more popular models to the Burnaston plant(in Derbyshire). The less popular models were still produced in Japan.

If the British pound were to join the European monetary union would the problem have been resolved? Why o you think this has not happened?

* The use of euro instead of sterling only eliminate the currency exposure between the UK and Europe, but is there anything to do with the variances in currency value between Japanese yen and other currencies. Therefore the UK join the EMU only eliminate the currency risk between euro and pounds?

* need to check any specific plan yet? No

* need to research why UK believe itself can benefit from...