Mathematics of Globalization
I recently read an article in The New York Times – “Exchange Rate Hurts Toyota, giving Rivals a Chance to Leapfrog It” (September3, 2010). The gist of the article is that because of the strengthening Yen against the US Dollar and the fact that Toyota imports 35% of the autos it sells in the US, their products are less competitive and they are losing market share. The article goes on to quote a Toyota spokesperson in Tokyo … “Our goal is to produce cars where they’re sold … the idea is to try to make as many cars locally to increase local content. That just makes business sense.”
The change in thinking is extraordinary.