Blade Inc Case

Overview Blades, Inc., is a USA based company that has been in embodied in the United States for threesome socio-economic classs. Blade relatively is a small Company, with total assets of nevertheless $200 million. The company produces only a single type of roller blade. Ben Holt the CFO of the Blades Inc. fiscal Information Total assets of was only $200 million and scratch year net income of $3.5 million. Return on asset is 7%. It straining price has fallen from high of $20 per shargon three years ago to $12 last year. ON THE basis OF BLADES INC. CASE 1. What are the advantages Blades could gain from importing from and or exporting to a alien country much(prenominal) as Thailand? In recent years Thailand experience economy d causeturn and due to languid economic conditions Blades can gain the followings: Low prices. Lowering Blades damage of goods sold. If the inputs (rubber and plastic) are cheaper when imported from a foreign country such as Thailand, this would increase Blades net income. Import raw hearty and supplies will be cheap as compare to USA.   monetary value reduction in material can achieve economies of scale. As far as exporting is concerned, Blades, Inc. could be one of the first firms to sell roller blades in Thailand.

Since Blades is considering longer range plans in Thailand, importing from and exporting to Thailand may present it with an opportunity to express initial relationships with some Thai suppliers. Can increase competitiveness. Competitors are also importing and exporting from Thailand To survive in its own country 2. What are some of the disadvantages Blades could face as a burden of foreign trade in the short run? In the long run? There are several disadvantages to foreign trade. The currency fluctuations in Thailand dollar bill would affect Blades. For instance the dollar cost of imported inputs may become more high-priced over time. Blades would also be exposed to the economic conditions... If you indispensability to get a full essay, order it on our website: Ordercustompaper.com

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