Governmental Influence on Trade: Catfish, Toyota & Walmart - Case Study Example

GOVERNMENTAL INFLUENCE ON TRADE: CATFISH, TOYOTA & WALMART s It is evident that governments influence in business affects trade. This is the case with Wal-Mart, Toyota, and Catfish. On the other hand it is important to understand that the government influence is so important in trade as it helps preventing exploitation of customers as well as protecting some internal firms from exploitation by foreign firms. We are all aware that Toyota and Wal-Mart are multinational companies and their arrival in a foreign country is likely to cause huge competition and threaten local businesses.

Toyota’s European DriveToyota is able to make their vehicles anywhere in the world before trade barriers were introduced. This company has managed to maximize its profits due to the differences in production and labor cost. Other European manufacturers like Volkswagen are paying their workers as high as $ 40 per hour while Toyota is only $3.6 in Turkey. This difference in government policies is what creates variation and differences when it comes to trading. It is also important to realize that the bans in EU have been lifted and this one has greatly favored Toyota leading to its success in addition to its efficiency in terms of operations and management.

This has also enabled the Company to be a permanent member of the European Automobile Manufacturers Association. From this case study it is evident that if government policies embrace the manufacturing of automobiles, it becomes so easy for the multinational companies to conduct their businesses (Kanter, 2010). Wal-Mart goes southWal-Mart has extended its operations to Mexico therefore posing so much threat to Comercil a Mexican retail chain shop. Wal-Mart has been a strong competitor especially since NAFTA’s lifted its tariffs which were posing a significant threat to WalMart operations.

Mexico joined GATT which has liberalized the trade space allowing free entry and exit of businesses. For this reason, Walmart used this opportunity to enter the market and since their entrance Comercil have been under a lot of pressure to maintain their stability and supremacy in their country. Free entry and exit has also enabled mergers which has in turn increased competition. Walmart’s slogan of ‘everyday low prices’ has enabled the company to dominate its business. This is also the reason why most of customers in the US prefer Walmart to other retail shops.

Despite culture variances and challenges in logistics, the company has managed to bring a lot of competition in Mexico and is making huge profits thanks to the end of trade barriers and government sanctions. Catfish by any other nameCatfish production in the US has been a big industry but this production will be just another name. An example is Delacata a 40 year firm collapsed in the US due to increased fuel and feeds for the catfish. Catfish production has been one of the most successful businesses in the US for quite a long time (PAUL GREENBERG, 2008).

For instance the U.S share of frozen fillets fell 80% and 43%. The fishing ships are forced to go deeper into the shores and this is consuming a lot of fuel. On the other hand fish farming prices have considerably increased. Catfish are now fed on cons and soybean feeds. The catfish have changed and are no longer catfish but poor scavengers. While the US government is busy restricting trade in the US Vietnam was enjoying the benefits due to its climate. It is important to note that the US government prohibits discharge of fishpond waters into rivers while Vietnam has no restrictions (John Daniels, 2010).

In addition to this, The Us regulated even the name used for the catfish. Catfish name was used for even different varieties of fish which were never catfish. This led to further deterioration of catfish production. ReferencesJohn Daniels, L. R. (2010). International Business (13th Edition). New York: Prentice Hall.Kanter, J. (2010, July 23). Toyota leads Asia drive in Europe. Retrieved 2014, from The New York times: http://www.nytimes.com/2005/07/22/business/worldbusiness/22iht-wbauto.html?

pagewanted=all&_r=0PAUL GREENBERG. (2008, October 9). A Catfish by Any Other Name. Retrieved 2014, from The New York Times: http://www.nytimes.com/2008/10/12/magazine/12catfish-t.html?pagewanted=all