Toyota 's Main Economic Driver Is The Automobile Industry Essay

1407 Words Dec 10th, 2014 null Page
The automotive industry is dominated by five key players General Motors, Chrysler, Ford Motor Co, Toyota Motor Co, and Honda Motor Co. The majority of the markets shares are divided up respectively between these five giants. This makes this industry an oligopoly, since not one company has full control over the market. When talking about the way profits are measure we turn to the GDP. The GDP, gross domestic product, is the total market value of all goods and service summed together in the course of the year it was provided. Now the GDP is different for each country. Since Toyota is mainly manufacture in Japan, their GDP influence is much greater compared to the United States. Now this isn’t to be confused with market share. Toyota also is the leader when it comes to the market share, but we will get to that later. Japan’s main economic driver is the automobile industry. Due to its lower costs and larger work force many companies in the oligopoly produces in Japan, as well as many other counties. In the Figure 1, provided by MarketRealist.com, it shows the effects that each market has on the economy of Japan. With the majority of the exports being automobiles and that most the volume that is produced will leave the country. This means that its exports will affect other countries economic system. The graph Figure 2, also by MarketRealist.com, it shows the majority of their exports are traded with the United States. With imports from Japan plus the 1.25 million more produced…

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