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5 Economic questions of Toyota

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This essay will provide the essential economic issues in which the article puts forth. To explain the precise means, five simple questions will be used to evaluate the article. The questions are: What exactly is happening to Toyota? Why is it happening? Who gains and who loses? Does this matter and why? What can be done to prevent or make the situation more flexible? Toyota, the well-known car-manufacturing tycoon will be putting an abrupt end to its engine and vehicle manufacturing in Australia by 2017. The decision was influenced by many different factors as well as having knowledge that the car manufacturing industry is economically taxing. The fact that the production of cars in Australia was already in decline made a transformation possible as well as Australia’s high cost and low productivity. This can be viewed, said by Paul Bloxham who is HSBC’s Chief economist, as “globalisation” stating that Australia could obtain the same low-cost manufacturing in relation to the rest of the worlds manufacturing regions. Toyota felt that the Australian dollar was extremely high, and in this case was hindering the company’s exports from functioning sustainably, making the trades unsuccessful. As the engine and car producing company became part of the global manufacturing market, many inexpensive production expanses were located which shrank the size of the Australian industry. The excess producing together with a major increase of new stock being brought forth, will force the manufacturers to inflate their prices on the products. In order to make the automobiles, commodities are utilised such as iron, steel and magnesium in which recently have increased in price due to great demand, affecting and lifting the average price of a vehicle.... ... middle of paper ... ...ustralia was inevitable. The approach now is vital to ensure “displaced” workers receive full support by other parties and the government by aiding towards the finding of new jobs or simply, being retrained and slotted into new manufacturing of some sort (Gahan, 2014). Government support is most definitely required so that economic and social costs can be uplifted as much as feasible, accompanying new investments of business in districts where Toyota had been based. Works Cited Miller, J. (1996). Automakers get ready for 21st century. Rubber and Plastic News, 26(3), 24-28 Marjorie, S. (1997). Straight from the top. Automotive Industries, 177(11), 47-51. Gahan, P. (2014). Toyota’s exit was inevitable: now for real test of government. The conversation, Retrieved from http://theconversation.com/toyotas-exit-was-inevitable-now-for-real-test-of-government-23117
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