Free Economics Dissertations - This Is A Positive Sign As Well For A Company Looking To Manufacture
This is a positive sign as well for a company looking to manufacture automobiles in Japan (Uceda, 2004).
In order to provide some idea of the Japanese automobile market and the international scope of automobile production, the following statistics are interesting.
Since the 2nd World War, it was known that Japan had the ability to be a significant production force in terms of automobiles. Though, at that time, production was slow. In the 1980s, there was a great change visible, and this change included a greater production and sale of Japanese automobiles. This is not to understate the production and sale of other companies outside Japan, but it was clear at this time that Japan had immense potential for growth in the automobile manufacturing industry. In the late 1990s as well, demand for new automobiles worldwide was 52.4 million. This included 35.94 million automobiles for passengers. Passenger automobile sales were 8.27 million in the United States, which is considered to be the largest car market in the world. This was followed by 4.49 million in Japan, and 3.53 million in Germany. Other countries that accounted for the remaining part of the overall figure included, Italy’s 2.41 million, England’s 2.17 million in, and France’s 1.71 million".
According to the above figures with respect to automobile markets world wide, it can be observed that Japan is recognized as second on the list as far as market demand for automobiles is concerned.
Considering the current situation in the automobile industry globally, it seems encouraging for investing in Japan. This is because of the fact that of late Toyota has had more success than the big two, General Motors and Ford. With a 10 percent growth rate reported, the big two are being left behind. However, this growth rate is an encouraging factor for production of automobiles in Japan.
In addition to producing automobiles in Japan, there is a great deal more that an investing company can do. With the scope for production in Japan for consumers and potential consumers in Japan, a company can achieve significant success. To begin with of course, existing customers would be most important, and they would be the chief elements to gain more and more customers. So, for example, if a new company in Japan has to make its name, even if it were to sell a few automobiles, it could provide services that would hold their initially gained customers. It is through this type of service provision that newer customers can be gained.
Economic Mechanism in Terms of Cost of Labor and Value of the Economy:
Given that labor may cost less in Japan than it does in the United States, one needs to comprehend the value of labor, which would automatically reveal why it costs less than other countries.
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