Honda Overview

Unit II Scholarly Activity.

“1. Provide a company overview, and identify the countries in which the corporation operates.”

Answer:

Ranking 51 in 2009 of the Fortune Global 500, Honda Motor is the name that most Vietnamese people nearly know by heart. In Vietnam, Honda is also called to replace the motorcycle word.

Honda Motor Limited Company was established on September 24th 1948 by Soichiro Honda in Japan with the capital at ¥1 million. In the current, the capital has increased to ¥86 billion with some main products such as motorcycles, power products or automobiles. From “the start of a dream” moment until now, it is not only limited its dream in Japan but also broadened to various regions around the world. There are about sixty countries where Honda locates on and Vietnam is one of them.

“2. Identify the types of market systems and types of legal systems that exist in the countries where the corporation operates. What effect do these have on the company’s operations?”

Answer:

Since Vietnam was one of former French colonies, our legal system conforms to civil law. Therefore when Honda came to Vietnam, it has to stick closely to Vietnamese “systematic codifications of codes” and take responsibilities for existing legal. Moreover, Vietnam is still a developing country and its market is oriented by the government. That’s why; its operation here is associated between Japan Honda Motor, Thailand Asian Honda Motor and Vietnam Engine and Agricultural Machinery Corporation.

Meanwhile, in United States, the country applies common law system; Honda has to be ready and proactive for a lot of unexpected issues. The reason is that disputes will be considered “prior court decisions and principles of equity”. Furthermore, the operation there is affected much by America’s economic slowdown and the recession of stock market.

“3. Discuss the possible sources of political risk for:

(a) the countries in which the company has a presence and

(b) the basic...