(1) (A) Japan had reduced its motor car exports to the US as a result of...

 

Transcribed Image Text:

(1) (A) Japan had reduced its motor car exports to the US as a result of continual pressure from the US government in the 1980s. Japan, therefore, got no choice but agreed to the request from the US. (B) As reported, if companies in overseas countries wish to win a contract to produce and export certain equipment to the US government agency, it must ensure that at least 51% of the product by value is to be manufactured in the US. (C) In the mid-1990s, China was found exporting products of bicycles and toys to Mexico at prices much lower than those sold locally in Mexico. In response to the act, Mexico had levied heavy duties on Chinese imports to protect local production. (2) Fuji Film and Xerox Corporation had expertise in producing xerographic products. Since 1962, they have started their long-standing partnership arrangement in the ratio of 50:50. (3) Peter, a graduate of the Degree in Global Business, states that "a traveler dining at Subway in Hong Kong can reasonably expect the same food quality of sandwiches, pizzas or salad that one would receive in Japan". Under this operation, a firm's brand name carries a message to customers about the quality of the firm's product, no matter where the firm is located. (4) Toyota Motor Corporation ("Toyota") has global production and distribution of motor vehicles. It customizes its global business strategy to produce large trucks for North Americans while small cars for Europeans. However, Toyota could still gain a certain degree of economies of scale. (5) Read the statement, "... the European Union is the only successful common market ever established..." Required: (a) For scenario (1), identify the three associated trade policies of (A), (B) and (C) in blocking free trade. (3 marks) (b) For scenario (2), identify the type of partnership arrangement between Fuji Film and Xerox Corporation for gaining global access. Suggest three advantages of this type of arrangement in general. (4 marks) (c) For scenario (3), state and explain the mode of entry Subway is operating and hence suggest any one of the associated disadvantages. (d) For scenario (4), (4 marks) (i) suggest and describe the global business strategy Toyota is adopting. (ii) advise one way by which Toyota could achieve economies of scale under the global business strategy suggested in part (i) above. (4 marks) (2 marks) (e) Explain the statement with supporting reasons. (3 marks) (1) (A) Japan had reduced its motor car exports to the US as a result of continual pressure from the US government in the 1980s. Japan, therefore, got no choice but agreed to the request from the US. (B) As reported, if companies in overseas countries wish to win a contract to produce and export certain equipment to the US government agency, it must ensure that at least 51% of the product by value is to be manufactured in the US. (C) In the mid-1990s, China was found exporting products of bicycles and toys to Mexico at prices much lower than those sold locally in Mexico. In response to the act, Mexico had levied heavy duties on Chinese imports to protect local production. (2) Fuji Film and Xerox Corporation had expertise in producing xerographic products. Since 1962, they have started their long-standing partnership arrangement in the ratio of 50:50. (3) Peter, a graduate of the Degree in Global Business, states that "a traveler dining at Subway in Hong Kong can reasonably expect the same food quality of sandwiches, pizzas or salad that one would receive in Japan". Under this operation, a firm's brand name carries a message to customers about the quality of the firm's product, no matter where the firm is located. (4) Toyota Motor Corporation ("Toyota") has global production and distribution of motor vehicles. It customizes its global business strategy to produce large trucks for North Americans while small cars for Europeans. However, Toyota could still gain a certain degree of economies of scale. (5) Read the statement, "... the European Union is the only successful common market ever established..." Required: (a) For scenario (1), identify the three associated trade policies of (A), (B) and (C) in blocking free trade. (3 marks) (b) For scenario (2), identify the type of partnership arrangement between Fuji Film and Xerox Corporation for gaining global access. Suggest three advantages of this type of arrangement in general. (4 marks) (c) For scenario (3), state and explain the mode of entry Subway is operating and hence suggest any one of the associated disadvantages. (d) For scenario (4), (4 marks) (i) suggest and describe the global business strategy Toyota is adopting. (ii) advise one way by which Toyota could achieve economies of scale under the global business strategy suggested in part (i) above. (4 marks) (2 marks) (e) Explain the statement with supporting reasons. (3 marks)