Surname 1 Name Course Professor Date Topic:Business and Management Research The Toyota company deals with international trade across different global regions. As a result, it is vital to consider the political economy and international trade framework. It will help understand the governance processes and the decisions made while dealing with economic interests and functions. A political economy involves the interaction of economic facets and politics within a country. Therefore, the government chooses the strategies which favor them, such as trade policies and protections. Conversely, international trade is vital since it entails globalization, spreading across different governance policies and reinforcements. Toyota is a global automotive company that has vast outlets worldwide. The firm has more than 300000 employees who have been spread over the globe to serve the robust consumer base of the corporation. In maintaining its position, Toyota must effectively position itself towards political, intellectual protection rights, and economic facets. Political The political tenet affects businesses all over the world significantly. Some regions lack stability and thus reduce the appeal of a company in the region. A prime example can be seen in the political differences in Europe, where differences between China and Japan affected the flourishing of Toyota's company in China. The political tension between Japan and China has hindered consensus on a friendly business environment such as free trade agreements, thus reducing the potential for business operation in the area (Yusoof et al., Pg. 58). Further, political turmoils could also affect the financial stability of people within a region leading to lowered
Surname 2 income among the natives. Such effects consequently affect the residents' purchasing power, reducing the purchase of promoted products. This instance can be retrieved from the unrest in Ukraine, where most people have been destabilized, leading to poverty and an inability to buy automotive products. Intellectual Properties and Patent Rights Each region and country has a diverse set of ethics that regulate the management and conduct of business operations. Firms operating within the nations must abide by the stipulated regulations to reduce conflict and guard their reputation in the market. Toyota company has to adhere to the intellectual properties right which govern innovations. The firm has reinforced an IP division in China to prevent counterfeiting of its brand in China, leading to a ruined reputation (Brander et al., Pg. 908). The company has engaged China in counterfeiting its products, leading to immense losses. The International Intellectual Property Protection Forum (IIPPF, 2002) has been deployed as a robust initiative to which the corporation and others must adhere while operating in the international market. Violating the rights could attract an immense fine, as demonstrated by the $180 million penalty for non-compliance with the Clean Air Act (US, 2021). The corporation has also faced several accusations by Intellectual Ventures on patent assertion, which could attract hefty fines and lead to enormous losses. Economics The concept of economics entails the business-related factors that affect market operations. Economic factors within a market affect revenue directly through implications on sales and price of the products. Toyota company has been affected by the economic trends in the international environment. Additionally, taxes imposed on exported company or product is an
Surname 3 additional economic aspect that affects the business. Quotas are the physical limits on quantities imported in a specified time. The implication is that the companies outside an economic zone or country step in second to fill the gap left by local producers. Administrative practices like the duties and minimum salary for the employees working within Toyota centers in China and US could also affect the firm's profitability based on the target revenue returns (Gao & Low, Pg. 978). For instance, the weakening Yen against USD has been a recent prime pattern and could offer an opportunity for the corporation's expansion. Economic tariffs pose a threat to the corporation since its US-made products could rise at a significant level when a 25% tariff is charged on its products.