Blades Inc. Case Study Essay

1. What argon the advantages marques could gain from import from and/or merchandise to a unusual acres such as Tailand?autonomic nervous system The advantages Blades could gain from importing from and/or trade to Thailand could be Decrease their equal of goods sold, and change magnitude Blades net income since rubber and plastic are cheaper when imported from a remote country such as Thailand. Due to its spiffing production process Thai firms could non duplicate the high-quality production process , so establishing a subsidiary in Thailand would defend blade sales before Thai competitors. Allow Blades to explore the option of merchandise to Thailand by building relationships with some local anaesthetic suppliers. As far as exporting is concerned, Blades could become the first firm to vendor roller Blades in Thailand. Diversify their enthronement by opening option to export to other countries beyond Thailand to ensure union sustainability.2. What are some of the dis advantages Blades could manifestation as a result of foreign trade in the short cater? In the long run?Ans The disadvantages Blades could face as a result of foreign trade in the short run are Exchange rate risk. Blades would be exposed to currency fluctuation in the Thai baht if importation cost increment without Thai suppliers adjusting their price. International frugal condition if Thailands economy undergoes recession, Blades would produce from sales decrease in Thailand. In the long run, Blades should be aware of the policy-making risk involved in operational in Thailand, such as every regulatory changes or tax increase may impact on Blades subsidiary.