EECS 1520 Lecture Notes - Lecture 8: Sports Equipment, Financial Analyst
21 Jun 2018
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EECS 1520 Lecture 8 Notes
Introduction
Developing a Multinational Sporting Goods Corporation
Establishing a subsidiary in Thailand would also make sense for Blades due to its
superior production process.
Holt is reasonably sure that Thai firms could not duplicate the high-quality production
process employed by Blades.
Furthermore, if the company’s initial approach of exporting works well, establishing a
subsidiary in Thailand would preserve Blades’ sales before Thai competitors are able to
penetrate the Thai market.
As a financial analyst for Blades, Inc., you are assigned to analyze international
opportunities and risk resulting from international business.
Your initial assessment should focus on the barriers and opportunities that international
trade may offer.
Holt has never been involved in international business in any form and is unfamiliar with
any constraints that may inhibit his plan to export to and import from a foreign country.
Holt has presented you with a list of initial questions you should answer.
What are the advantages Blades could gain from importing from and/ or exporting to a
foreign country such as Thailand?
What are some of the disadvantages Blades could face as a result of foreign trade in the
short run?
In the long run?
Which theories of international business described in this chapter apply to Blades, Inc.,
in the short run?
In the long run?
What long-range plans other than establishment of a subsidiary in Thailand are an
option for Blades and may be more suitable for the company?
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Document Summary
Establishing a subsidiary in thailand would also make sense for blades due to its superior production process. Holt is reasonably sure that thai firms could not duplicate the high-quality production process employed by blades. Holt has presented you with a list of initial questions you should answer. Some of the key concepts are illustrated with an application to a small sporting goods firm that conducts international business. Reasonably sure that thai firms could not duplicate the high-quality production process employed by blades. Furthermore, if the company"s initial approach of exporting works well, establishing a subsidiary in thailand would preserve blades" sales before thai competitors are able to penetrate the thai market. As a financial analyst for blades, inc. , you are assigned to analyze international opportunities and risk resulting from international business. Your initial assessment should focus on the barriers and opportunities that international trade may offer.
