In the past decades, EU-based companies such as Toyota have fostered a number of business opportunities within the fast-growing E. U markets. According to the Grant Thornton International Business Report, a number of EU-based businesses have been able to seriously capitalize on trading opportunities with the fast-expanding economies. The growth of the economics such as China has therefore had a positive impact on the EU-based businesses over the past 2-3 years. Grant Thornton (2007) argues out that the EU-based businesses have been able to benefit from the opportunities presented by these fast-expanding economies over the past few years.
In addition, venture capitalists from the EU-based multinationals are gradually more looking to these emerging markets for new opportunities. According to Grant Thornton (2007), EU businesses ranked China’s impact as +14 during the year 2007 when compared with 0% in the previous year. European businesses have therefore been able to focus on the opportunities coming out from these emerging economies as it is critical for them to continue engaging in these markets if they have to stay competitive. 10Archibald, J, Theory and Practice of International Commerce, New York, International book publishing company, 2008.15 Czinkota, M and Ronkainen, H, Fundamentals of International Business, Wessex Publishing, 200815Kim, Chang-Ran ‘’Toyota Motor Corp aimed to boost its market share in Europe’’, 200915Grant Thornton, 2007, Businesses Capitalizing on Opportunities in the World’s Fastest Growing Economies, 2007, retrieved on 12 January from < http: //www. businessweek. com/magazine/content/06_31/b3995001.htm> 16Kiyoshi, K, Direct foreign investment: a Japanese model of multinational business operations, Taylor & Francis, 1978.16Mahidhar, V, Giffi, C, Rethinking Emerging Market Strategies, 2009.161.0 IntroductionInternational trade and investment provides a theoretical framework in which contemporary organizations compete and operate.
On the other hand, business activities in the European market has greatly been transformed, essentially due to various significant trends such as increasing competition and globalization which are reshaping business strategies at a scale that has never been witnessed before.
This particular report seeks to evaluate the purpose of the European market for one of the E. U based multinational companies Toyota Company. The scope of the analysis will further be grounded on evaluating the impacts of emerging countries such as China, on the European based companies and the strategies in which UK and EU companies may benefit from the rise of these countries. 2.0Purposes of the European market for Toyota In the context of multinational companies, international trade is primarily about risk and gains to both the firm and also to the host country.
Toyota has had a good take on the global market share and the European market. For instance in early 1960 Toyota entered the European market by exporting its brands to Belgium, another expansion strategy was the construction of an assembly plant in Britain. One of the purposes of the European market for Toyota is the facilitation of foreign direct investment FDI.
Foreign direct investment is an undertaking majorly driven by the motive of making profits. Foreign firms such as Toyota face uncertainty concerning how consumers will respond to their products and the costs associated to investing on a foreign market. However the E. U has actually provided safe grounds for investment for Toyota Company. Craig and Campbell (2005) highlight that Toyota’s objective of direct investment into the European market was basically to overcome the restrictions on imports placed by the E. U on imports from foreign borders.