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Week 7: MNC Section VI
PART A: Examine your MNC’s outsourcing and immigration issues.
Q.1 Does your MNC outsource work? Where to? Why does it outsource?
Toyota does not truly outsource because it sends its workers to China, in the eyes of a U.S. consumer. Of course, being based in the United States isn’t a guarantee of quality, but it does mean that engineers are nearby, and headquarters inspections aren’t far away. Everyone speaks the same language and follows the same rules. Not to mention, there will be less xenophobia in the market. People have nightmares about Chinese workers not meeting basic safety standards since the 2007 toy recalls. The low labor cost is the primary reason every manufacturing company outsources (Tolegen, 2022). Many businesses believe that shifting operations to low-cost countries like China will save them money. However, this does not imply that all manufacturing is shifting overseas. Toyota teaches its employees how to make imported goods. Whatever products need to be manufactured, Chinese workers are skilled and well-trained.
Q.2 Address immigration policy in your MNC home country and host country.
The Immigration and Nationality Act is the body of laws that decide who can enter the United States and under what conditions (INA). According to the INA, the United States government has the authority to grant up to 675 000 permanent immigrant visas in a variety of categories on an annual basis. In addition to these 675,00 visas, the INA does not limit the number of spouses, parents, or children under 21 of U.S. citizens who are permitted to enter the country each year. Under the United States Refugee Admissions Program, the president must hold annual consultations with members of Congress to establish the total number of refugees who will be allowed to enter the country. Additionally, the United States of America grants provisional citizenship to some individuals who are not citizens annually.
Tourists, international students, and temporary workers are the types of visitors who are granted non-immigrant visas, allowing them to remain in the country for years. In contrast to visas granted based on employment, other types of non-immigrant visas, such as those granted to tourists and students, do not have annual quotas.
Asylum seekers in Japan are routinely detained for over a year, and the country’s current immigration policies have an abysmal acceptance rate (0.4 percent of claims in 2019). The Japanese Ministry of Justice estimates that by the end of 2021, the number of foreign residents in Japan will have surpassed 2.76 million (excluding illegal immigrants, short-term foreign visitors, and tourists staying more than 90 days in Japan). In 2020, Japan was expected to have a population of 125.57 million, making up about 2.29 percent of the world’s total foreign-born population (Friedberg & Hunt, 2018).
Q.3 What does this immigration policy and outsourcing policy tell you about your
MNC?
A conclusion about the nature of Toyota’s company can be drawn from the immigration and outsourcing policies it has in place. To fulfill its role as a responsible member of the global community, Toyota complies with all laws in effect across the globe, both in terms of its letter and spirit. It operates its business honestly and ethically. Toyota places a high value on the cultural heritage of every nation in which it conducts business and actively works to improve those nations’ economic and social conditions. Foster an atmosphere where both employees and management can trust one another and recognize the significance of one another’s contributions. Make creative management your goal to achieve growth that is beneficial to society as a whole.
PART B: Your MNC and Outsourcing/Immigration
This week, please examine your MNC and research it to find where your MNC
outsources work (production, manufacturing, labor, etc.) for example. Do you see
tight immigration policies between your Home/Host countries or are they relaxed
and even encouraged?
60% of Toyota vehicle parts that exit US plants come from regional auto parts suppliers. 98% of the parts used in cars manufactured in Japanese factories are made in Japan. Toyota, on the other hand, has a variety of joint ventures in China where it manufactures automobiles such as the Avalon, Land Cruiser, and RAV4. Japan and the United States both have lax policies. Recent changes to immigration law are an exception to this tendency. In 2012, President Obama utilized executive authority to allow young adults who had entered the country illegally to get a work visa and deportation protection.
References
Tolegen, T. (2022). Cost Analysis: Toyota, the Kaizen Vehicles. Available at SSRN 4195995.
Friedberg, R. M., & Hunt, J. (2018). The impact of immigrants on host country wages, employment and growth. In Interdisciplinary Perspectives on the New Immigration (pp. 89-110). Routledge.
