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Toyota out of reverse gear

Read the article Toyota Raises Profit Forecast as U.S. Sales Recover, Asia Gains

and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.


Question 1

Define the terms:

  • profit margin
  • exchange rate.

Question 2

Explain the principal factors that had led to falling profits at Toyota in the previous quarters.

Question 3

Analyse the effect of the exchange rate on sales and profits at Toyota.

Question 4

Evaluate the strategies adopted by Toyota to try to improve their profitability.

Extension activity

With reference to Toyota's reliability problems, discuss the importance of goodwill to Toyota and its financial performance.