This part of the assignment consists of the mini case study, Toyota’s European Operating Exposure. The case appears on page 345 of Eiteman, Rath et al, Multinational Business Finance (2nd Edition) (your textbook).
Since this is a mini case you are not required to prepare an executive summary. However, your written submission should be in the form of a typescript report, 1.5 spaced, 11 point font (Arial) including:
• Answers to the relevant questions;
• A clear statement of assumptions;
• Suitably labelled working notes and appendices, if appropriate.
Case study questions
1. Why you think Toyota waited so long to move much of its manufacturing for European sales to Europe?
2. If Britain were to join the European Monetary Union, would the problem be resolved? How likely do you think it is that Britain will join?
3. If you were Mr Shuhei, how would you categorise you problems and solutions? What is a short-term problem? What is a long-term problem?
4. What measures would you recommend that Toyota Europe take to resolve the continuing operating losses?