Toyota made headlines today by announcing its first loss in 70 years. Check out the New York Times and Wall Street Journal stories.
Certainly this is a remarkable story that demonstrates just how pervasive the effects of the economic downturn really are. But this story reminded me of the brighter side of global trade. Global trade, at its best, can enable people to climb the ladder of economic development. The story usually goes something like this… People connect with the global marketplace by producing low value goods. They then accumulate skills that enable them to produce higher value goods.
Indeed, this is the story of Toyota which, about 70 years ago, spun off from Toyoda Automatic Loom Works. It never ceases to amaze me that Toyota began as a textile company.
Certainly, yesterday was a tough day for Toyota. But the company itself is a remarkable success story that highlights the possibilities of global trade.
