Toyota Motor Corporation Essay Example | Topics and Well Written Essays - 1250 words

Toyota Motor Corporation - Essay Example There are huge risks, however, in establishing production bases in emerging markets particularly in China. Sino-Japanese relations are now at a low point due to the increasing assertiveness of the former in its sovereignty claim of a string of islands that the later now possesses. This string of islands, known as Diaoyu to the Chinese and Senkakku to the Japanese, has been the flashpoint of national sentiment especially when Tokyo purchased the islands from its private Japanese owners. Ever since the purchase, several Japanese establishments and even diplomats have been under threat by Chinese activists leading to shutdowns. Nationalistic sentiment has risen to the point that boycotts of Japanese products have been called upon. Warships and jet fighters have also been recently deployed underlining the turmoil between the two nations (Gao, 2013).There are also threats of regulatory requirements requiring companies to reveal industry secrets, especially technological innovations. The W all Street Journal, for example, reported that Chinese authorities are contemplating about requiring foreign companies to register all information on their products before they can operate in the country (Alexander, 2010). Cases have also been filed against local Chinese manufacturers alleging that they have copied designs of certain models. In the worst case, nationalization of Toyota’s assets in China can happen as Chinese history provides several examples, especially during its communist transformation.... This string of islands, known as Diaoyu to the Chinese and Senkakku to the Japanese, has been the flashpoint of national sentiment especially when Tokyo purchased the islands from its private Japanese owners. Ever since the purchase, several Japanese establishments and even diplomats have been under threat by Chinese activists leading to shutdowns. Nationalistic sentiment has risen to the point that boycotts of Japanese products have been called upon. Warships and jet fighters have also been recently deployed underlining the turmoil between the two nations (Gao, 2013). There are also threats of regulatory requirements requiring companies to reveal industry secrets especially technological innovations. The Wall Street Journal, for example, reported that Chinese authorities are contemplating about requiring foreign companies to register all information on their products before they can operate in the country (Alexander, 2010). Cases have also been filed against local Chinese manufactur ers alleging that they have copied designs of certain models. In the worst case, nationalization of Toyota’s assets in China can happen as Chinese history provides several examples especially during its communist transformation. The wounds of World War 2 is being brought up to the front with China and South Korea declaring that Japan has not fully addressed issues of war crimes especially the use of their women as sex slaves of Japanese soldiers (Reuters,2012). Hence, while emerging markets present tremendous opportunity for sales and lower production costs, the current political and social situation can present losses to the company. Careful consideration of current events should be conducted in light of the territorial dispute between the two countries. Toyota does not enjoy the