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 in the Mexican peso which fluctuates but is generally considered to be weaker than the U.S. dollar or euro which will provide Toyota with a price advantage in the export market. This is an example of the _______ force which affects international marketing activities.

Question

Quizplus · Accepted Answer

This situation relates to the economic force as it involves production costs, currency exchange rates, and the export market.

Toyota Motor Company Recently Announced Plans to Build a New