NOT SO CLEAR CHOICES: SHOULD YOU EXPORT OR MANUFACTURE

OVERSEAS?
1. What advantages and disadvantages does exporting have?
R/ Advantages of the product may depend decide Transport, a number of the
characteristics common to all products.
Storage capacity and volumes Ships : Boats Navios sun or loose media
transfers offer greater capacity when the transfer More quantity materials .
more competitive freight : freight rates are very competitive and general
economic policy. The only difficulty could be seen on this occasion are
additional charges , as is the fuel.
Security and stability:
climatological and meteorological conditions delayed in as many occasions
departure or arrival of a plane while thanks to the strength , endurance and
reliability of ships they can cope more easily in more complicated environments.
Greater variety of products and transportable materials
considered one of the most remarkable elements we can see how unlike what
happens in air transport ( which in most cases is not liquid or hazardous cargo
is permitted) shipping is the only route available to make a success of this
series of assignments based on specific materials (petroleum , oils ... )
Coverage and safe: thanks to the fact that almost three quarters of the earth
the level of scope of this medium are covered with water is almost absolute.
Also the fact that it is a very safe way since almost almost all deliveries are
made on time.
Disadvantages of shipping:
The red tape is relatively extensive / complicated , even when services customs
agents greatly facilitate work permits and the number of forms is superior to any
other means ( air / land ) .
TIME : This factor also must be taken into account when die die expected
delivery dates , Ginkel that the time required especially in long distances- is
gewoonlik algemene higher than the air / land ordragte .

2. What advantages and disadvantages does foreign manufacturing

have?
R/ ADVANTAGE
-In Developing country it is necessary to reach an international level of quality ,
to upgrade machinery, raw materials and processes , based on imports ,
necessary for export.
- In countries with high manufacturing costs , probably out cheaper to import
than produce , thus becoming resellers , from manufacturers to retailers .
- In countries with international trade agreements the gradual reduction of
import taxes to zero , it will lower the cost of international purchasing.
DISADVANTAGES
-Buy In another country reduces income country of residence entrepreneurial ,
economic problems as higher imports than exports .
-The Imports always carry the risk implicit increase in the price of foreign
currency. Tied to increased imports of foreign currency businesses that are their
main source of income, exchange or futures contract should cover , in
brokerages, to protect themselves.
-The Imports, high degree , dependent entrepreneurs make international
purchases. Any dependence weakens the company and a fortiori international
suppliers for the distance , deliveries and conditions.

3. Explain this statement : Perhaps the best way for Many Companies
To enter a foreign market is to First Export there, but with an eye
toward building overseas in the Future.
R/ Forms of access to foreign markets and connecting with any of their
distribution channels are not predetermined and must evolve depending on the
strategy of each company to adapt to changing markets . Therefore, it is
common for companies to choose input by a system of exploratory marketing ,

inexpensive and very measured risks , which over time may give way to more
complex and costly formulas, but also more efficient and profitable and that
internet he has emerged as a real star . The decision of the exporting company
to choose one of the targeted solutions also obey considerations of fiscal,
financial and organizational , it will be necessary to study and set for each
market.
4. What are the advantages of employing local personnel and managers
when operating overseas.
R/ You are not required to pay the tariff and VAT because while raw materials,
parts , intermediate goods and final goods are in Zona Franca are outside the
country; eventually these taxes are incurred when the goods are imported into
Colombia .
There are bound to cause VAT because they do not have income to Colombia ;
VAT and the fee is paid once imported .
FTZ exports to enjoy the benefits of tax exemption established by the Tax Code
for exports
5. What relevance do currency exchanges rates have for foreign trade?
R/ Governments can influence the exchange rate directly or indirectly.
They do directly setting the exchange rate. This means that the rate remains at
the same level until the government changes.
Indirectly through interest rates or buying currency in the foreign exchange
market . Moreover, many countries , including the United States, Japan and
Canada , fixed or floating flexible types of change that change daily or even
several times a day , depending on supply and demand
An increase in demand for the currency of a country in the foreign exchange
market generally increases the value of its currency. For example , an increase
in demand for US exports would result in a stronger dollar because other
countries would demand more Americans to pay for goods and services
increased dollars.

6. What other factors might be relevant?

R/ To select him or markets , the exporter must take into consideration that it is
not appropriate to try to cover more than allow their chances of supply and to
comply within the agreed business, so it is recommended to deal with one or
two markets in principle . You should not dismiss small or poorly performing
markets .
But it is advised not to venture into markets with strong restrictions on imports
and severe exchange controls or with clear problems of balance of payments.
Relative advantages in supplying the product to export or raw materials or
inputs needed to produce the goods to be exported. The final products, raw
materials , intermediate products and other inputs should be obtained in terms
of price, reliability and similar to those of international competition quality.

NEW U.S FACTORY JOBS ARENT IN THE FACTORY

1.What are three important reasons why foreign companies want to locate
in the United States?

Because the United States are the largest markets in the world, the proximity to
customers and therefore lower costs in the delivery of products. Moreover, wide
roads, clean water, educated workers, and plenty of suppliers and superb
technical base.
2.Does the addition of foreign manufacturers setting up manufacturing
plants in the United States mean there will be a boom in factory jobs?
Explain.
because a new manufacturing driven economic sector will emerge industries
such as computer software, robot making, and countless services that will add
job to supply the leaner manufacturers.

porque un nuevo sector econmico de fabricacin impulsada surgir industrias

tales como programas informticos, la toma de robot, y un sinnmero de
servicios que agregarn trabajo para suministrar los fabricantes ms magras

3.What kind of jobs and industries will increase due to the increase in
manufacturing? what implications does this have for workers in the near
future in terms of education?
The systems analyst, robots makers, and software engineers will increasingly
be selling their wares around the globe. contribute to learning and discovering
new ways of doing things

GLOBAL STRATEGY: GM IS BUILDING PLANTS IN DEVELOPING NATIONS

TO WOO NEW MARKETS
1.Briefly describe GMs four -plant strategy
the company has designed the plants to look so much a like that engineers may
mistake which country they are in. And the assembly lines are being set up so
that a glitch in a robot in Thailand, rather than turning into an expensive
engineering problem that requires an expert for each machine at each plant,
may well be solved by a quick call to Rosario or to Shanghai, china
2.What are some signs of GMs shift in global thinking?
the new factories illustrate, more than anything else. how the nature of
multinational corporations is changing as todays marketplace turns global
seeking future grow? Also signs are investments developing world and turning it
into a showcase for the latest in technology and lean manufacturing.

3.List the lean manufacturing elements of the Rosario plant.

there a high teach stamping machine that will press metal parts more quickly
than any other GM press and an engine plant that will deliver to the assembly
line engines with air conditioning, transmission and belts already installed.
workers will do many tasks, a key principle of lean manufacturing, and will be

assigned to teams working autonomously. every worker will be responsible for

an entire process in the assembly operation, including even the cleaning and
basic maintenance of machine.

4.What are some nonlabor local conditions that had to be taken into
consideration in designing individual plants?
Climate and humidity to protect machines oxidation