Toyota Motor Company recently announced plans to build a new production facility in Mexico and will be able to take advantage of reduced production costs related to wage rates in the local area. Toyota will sell the vehicles in Mexico and will also export the Corolla model the plant produces around the world. The finished products costs will be based on the Mexican peso, which fluctuates but is generally considered to be weaker than the U.S. dollar or euro. This will provide Toyota with a price advantage in the export market. This is an example of the _______ force that affects international marketing activities.

Question

Quizplus · Accepted Answer

The economic force, specifically the difference in wage rates and currency exchange rates, is affecting Toyota's decision to build a production facility in Mexico and export vehicles from there.

Toyota Motor Company Recently Announced Plans to Build a New