Report on Foreign Direct Investment of The Toyota Motor Corporation Term Paper

Report on Foreign groom Investment of The Toyota Motor Corporation - Term Paper ExampleAccording to 2010 financial data, India is the macrocosms fourth largest economy by purchasing power parity and tenth largest by nominal GDP. As per International Monetary Funds report, the democracys per capita GDP is $3,339 in 2010. As Shurtleft and Aoyagi back breaker out, India initiated its free market operations in 1991, and that highly boosted Indias sparing growth (999). The countrys industrial operations account for 28% of the GDP and it employs 14% of the total workforce. Indias economy is the worlds 12th biggest in terms of nominal factory output whereas it is 13th on the scope of service output. The country has achieved significant improvements in its energy and power resources during the last few decades Indias rock oil reserves are capable of meeting the countrys 25% of the domestic oil demand. surface structured Indian banking system plays a notable role in supporting Indias economic growth. A stable currency is another prominent feature of Indian economy. Hence, the economic factors of India offer emf opportunities for Toyota in the market. Despite these positive economic elements, the country has been facing serious income inequalities, higher unemployment, and increasing anatomy of malnourished children. Higher unemployment rate in India may be beneficial for the Toyota to obtain labors at cheaper costs. The countrys exports increased 22.3% in November 2010 whereas the imports rose by 7.5%. Similarly, the countrys trade deficit dropped from $10.45 cardinal in 2009 to $8.94 billion in 2010. Political Scenario India is the largest economy in the world and a federal positive republic. The countrys political situation is more or less stable. While analyzing the democratic invoice of India, it is obvious that Government of India has been led by the Indian National Congress most times. The Indian secern politics is dominated by several national parti es including INC, Bharatiya Janata Party (BJP), and a number of other regional parties. Presently, the Government of India is being led by the INC by winning with a surprising majority in the 2009 Lok Sabha Elections. Different political parties represent different societies and regions and their core values can have a big(p) influence on the Indian political spectrum. Since India is a democratic country, the Toyota may sometimes confront with agitations as occurred in the case of Coca Cola. However, the Indian government believes that foreign investment would significantly contribute to the speedy economic growth of the country. Therefore, the political spectrum of India offers opportunities for Toyota. By the end of 1970s, India liberalized its foreign trade policy and it provided multinational firms give away access to Indian market (Dahlman & Utz,). As a result, India