case study #2.docx - Case Study 2 ELECTRA BICYCLE COMPANY 1...

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Case Study # 2 ELECTRA BICYCLE COMPANY 1. What major advantages did Electra gain by using a contract manufacturer in Taiwan to produces its bikes ? - By using a contract manufacturer in Taiwan to produces its bikes, Electra became able to introduce their products to the global market: they can export bikes to Asian countries- China, while importing bikes domestic demand (into the United States). They keep manufacturing costs down (labor costs: cheap) 2. When Electra produced its bikes in Taiwan, did the company have to follow the laws of Taiwan or the laws of the United States ? - When Electra produces its bikes, it must follow the laws of both Taiwan and the United States. When manufacturing the bikes, Electra must comply with the laws

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