The Toyota Group is one of the world’s largest multi-national corporations with its headquarters in Japan - Edexcel - GCSE Business - Question 3 - 2015 - Paper 1
Question 3
The Toyota Group is one of the world’s largest multi-national corporations with its headquarters in Japan. It produces cars and electronics with factories in many di... show full transcript
Worked Solution & Example Answer:The Toyota Group is one of the world’s largest multi-national corporations with its headquarters in Japan - Edexcel - GCSE Business - Question 3 - 2015 - Paper 1
Step 1
Explain one possible disadvantage to Toyota of Egypt’s barriers to trade.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
One possible disadvantage for Toyota due to Egypt’s barriers to trade is that it may face higher prices for imported components. This is because Egypt's trade restrictions can lead to increased tariffs on these components, making production costs higher for Toyota. Consequently, this situation may lead Toyota to either raise the prices of its vehicles to maintain profit margins or absorb the costs, resulting in reduced profitability. Therefore, the barriers to trade directly impact the overall cost structure of Toyota's operations in Egypt.