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1. What do you think were the chief factors involved in Toyota's decision to undertake FDI in Australia rather than build its hybrids in Japan?
2 Why do you think Toyota decided to adapt the existing plant in Melbourne rather than build one from the group up elsewhere in Australia? List as many reasons as you can, and explain your answer.
3 What do you think the decision to manufacture in Australia rather than in itsdomestic factories will do to the company's reputation at home? How much attention do international customers pay to the location where theirautomotiveare assembled?
4 What do you see as the pros and cons of Toyota's approach to managing FDI?
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In this report we are analyzing the green car market in Australia, with respect to the automobile company Toyota, the decision taken by the company regarding hybrid car was successful and they enjoyed financial benefits, in this venture. The company effectively utilized the foreign direct investment for their expansion and growth. Due to the economic and cost problems now the Toyota company decide to stop manufacturing car from Australia. It is an intentional management case which related to the Toyota company, when they decided to shift from home country to Australia for the manufacture and distribution of hybrid cars. The main factor attracted the company is the subsidy provided by the federal government in manufacturing the product in Australia. In this case, we are analyzing the decision taken by Toyota based on critical factors.
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