1. How Honda Localizes its global strategy
Trade frictions between advanced nations
Economic problems must be discuss at the global level, not at the level or countries or even regions.
It is critical to build interdependent relationships among nations, and in doing so, restore trust.
Corporations from the advanced nations can contribute through investment and technology transfer
1st,countries involved must clearly understand the goals to be attained thorough mutual cooperation
2nd, each country’s role must be recognized and agreed upon

2. How Honda Localizes its global strategy
Honda’s overseas strategy: The four localizations
Localization of Products
Developing, manufacturing and marketing the products best suited to the actual and potential needs of the customer and to the social and economic conditions of the marketplace
To localize products, corporations must invest in R&D of products and on increasing production efficiency
Localization of Profits
Reinvesting as much of the profits as possible in the local market. A company investing abroad must regard it self as a local company and endeavor to prosper together with the host community.
Localization of Production
A corporation does not merely makes profits by exporting completed products: it carries out production activities where major market exist, thereby contributing to the development of the host nation and achieving mutual prosperity
This is the best way to gain acceptance of both the products and the corporation
There are two ways to make local production activity most effective
Increase ratio of local content
Increase local production. This also increase responsibility and pride in the employees
Localization of Management
It goes beyond transferring knowledge about management systems operations. It requires understanding the corporate philosophy
It also requires creating a sense of unity between management and labor so that everyone is working toward a common goal

3. How Honda Localizes its global strategy
Honda’s three most important policies:
Establish a good human relations between the management and the workforce
Maintain and promote harmony with the local community. An important factor in producing high quality goods is securing high quality labor
Give top priority to maintaining high quality standards in Honda’s products. Quality level is determined primarily by the actual design of the product itself, not by quality control in the production process.
Honda’s strategies and policies are aimed at achieving maximum customer satisfaction
It is essential for a corporation to interpret the word ‘customer’ in a broader sense – to cover the whole society in which it operates.