Multi National Company Management Coursework Essay

Multinational Company
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Joint ventures
As an entry mode, a joint venture requires a foreign and a local company to combine resources before selling products. This entry mode is significant when attempting to enter markets of tightly controlled economies such as China. In 2002, Toyota entered the Chinese market after agreeing to partner with Tianjin Xiali Automotive Co Ltd (Tianjin Xiali) to establish a 50-50 joint venture with a total investment of US$100 million (Buckley & Horn, 2009). This venture has been valuable to China because the country requires all auto joint ventures to use no less than 40 percent of domestically made parts. The venture was also approved by the Chinese government after Toyota agreed to share its expertise with small Chinese companies.
Exporting
Exporting is the simplest entry mode because it allows MNCs to send goods to a foreign market without using middlemen. Toyota entered the Brazilian market in January 1952 after exporting 100 Model FX large trucks. Brazil has greatly benefited from these exports because Toyota has established three engineering facilities in the country that employ approximate...