This is about how the international factors impact on my business (Toyota), and I am also going to discuss the impact of changes in the global and European business environment on the selected business.
Toyota is a Japanese automotive manufacture and it is a multinational corporation. It consists of 333.446 employers worldwide in 2013 and it was fourteenth largest company in the world by revenues. Toyota is the world’s first automobile manufacturer to produce more than 10 million vehicles per year, it according to OICA and company data in 2013.
United Status’s economy
The United States is the world's largest national economy with a GDP of approximately $16.8 trillion in 2013, due to high average incomes, a large population capital investment, moderate unemployment, high consumer spending, a relatively young population,] and technological innovation. All of these leas their economic to grow.
It is the largest importer of goods and second largest exporter, though exports per capita are relatively low. In 2010, the total U.S. trade deficit was $635 billion. Canada, China, Mexico, Japan, and Germany are its top trading partners. In 2010, oil was the largest import commodity, while transportation equipment was the country's largest export. However, their dates are high and China is the largest foreign holder of U.S. public debt.
The United States could be a good economic market for Toyota, because its country GDP is high, so the car raw material will be a lot cheaper than other countries. It unemployment rate is very low, which mean consumers’ spending is high, so their business will have a lot of customers to buy products. Bemuse of high level of consumer speeding, so their business will make more revenues than high unemployment rate countries. Another thing can benefit its business is that the United States currency is high, so Toyotas business will be earn more moony when they export to other countries, and use less money to buy materials form low currency countries.
Currently European economy is very dreadful and stressful, because most of countries in EU are having a serious problem, which is very high unemployment rates. For example, Greece’s unemployment rate is 26% in 2014, this leads their country’s economy to decrease quickly and leading to resection, because their government spending more than it receives from people. They need money for their public sectors, so they keep asking financial stable countries to borrow billions, these financial will lack of money finance money for their own country and cause the finance problem eventually. Finally, whole European economic will be collapsed and leading to recession.
There is other problem that makes European economic go down, that is low currency exchanges. EU’s currency is very low compared with others country currency, such as United Kingdom pound and the USA dollar. Therefore, they have to pay more money to other counters when import product form these countries, whereas, they will get less more form these countries when their businesses export the product outside the country. Low euro can big a huge effect to make their business go down and increase dates.
Low European currency exchanges could deep affect Toyota, because that will lead their business pay more money out and get less money in. For example, Toyota automotive manufacture have got many manufactures in these contuse, such as Spain, France and Italy. Therefore. When they buy raw materials form these country that will cost more money to pay off the invoices, but they will get less more form these countries, when they export cars to therm. This will make their manufacture lose money and cannot grow their business.
Current UK economic grew by 0.8% in the first quarter of 2014, and the following report will overview UK economy:
UK’s GDP is increased by 0.8% in Quarter 1 2014 compared with growth of 0.7% in Quarter 4 2013
Inflation is a