Honda Canada Essay

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Recommended: Regional free trade agreements

Based on current issues of Honda, Honda Canada announced that it will export vehicles to Europe for the first time. They stated that Honda’s decision to build it’s the next generation of EU-destined CR-Vs in Canada is a result of the Historic free trade agreement we reached in EU, which provides preferential market access to a half-billion new customer.
Under Canada-EU Agreement, the European Union will eliminate 10% tariff on the passenger of vehicles, providing Canada’s automakers with a competitive advantages in the EU market. The EU also eliminates – upon the agreement coming into effect – its tariffs on auto parts, which run as high as 4.5%.
How Honda penetrate their business in China
Honda entered the Chinese market in 1982 by cooperated …show more content…

In addition, Honda upgraded the former intellectual property office into a division and hence the IPR division was officially established. Resulted, the scope of work was expanded. The division’s main task is to provide support on IPR issues. Although they do not have to report directly to headquarters, they communicate regularly with the headquarters and sometimes the headquarters will give them directions. Meanwhile they will also give their opinions what should be done in China to gain support from the headquarters and improve their …show more content…

A plant was built by Honda in Taiwan in 1961 prior to produce cars and made Taiwan to become major producers of motorcycles for Honda. This allows the company to export most of the motorcycles to other countries such as China, Europe, and Middle East. The main reason Honda to build its manufacturing plant in Taiwan is to reduce exports of motorcycles from Japan. Foreign Direct Investment has also benefited Honda in a sense that the company can have better control over the plant in Taiwan at the same time achieved economies of

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