EXIM CASE

EXIM COMPANY Case Analysis EXIM Company: Comparative vantage in multinational Trade Case Analysis innovation One of the most important factors that fascinate wind plenty between countries and companies is the kin between proceeds be in different countries. Companies can decide to make water in countries where they can minimize cost in state to treat to countries were business cost are higher. The case is based on EXIM Company, a Connecticut-based corporation that assembles computer circuit boards for use in personal computers manufactured by IBM, Apple, Compaq, NEC, and other original-equipment manufacturers. The product portfolio includes a wide variety of multiple-function boards and other peripheral hardware apply in the growing personal computer market. receivable to removed competition, especially Asian manufacturers, the companies rate of growth has been reduced. Mr Klauser is concerned closelipped the competitor low price and is lo oking forward to decease up if it is convenient for the company to establish a outside drudgery plant in Asia. Due to the nature of the companies products (commodities) the gap of purchasing from low cost countries is also available.

ANALYSIS In decree to think what should be EXIM´s trade commixture we focused in analyzing the cost competitive advantage of producing the computers commodities in USA, Japan and Korea. We focused on getting a relationship between production cost in each of the 3 countries to conclude where it is cheaper to produce and where should the company focus its procurement and pr oduction activities. STEP 1 Discovering P! roduction be Advantage The primary step in our abbreviation is to obtain the production costs comparison of the 3 countries. Due to the localization of EXIM we included the 5% tariff that foreign products begin to pay in order to enter the USA market. labor COSTS IN USD (EFX NOV/98) function Local Production exists Local Production Cost Adding 5% Ad...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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