Blades Inc 1) What are the advantages Blades, Inc could gain from importing and/or exporting to a foreign country such as Thailand? An advantage of importing from a foreign country is to meet demand for an imported product that consumers perceive is of superior value to comparable brands produced at home. Also, Blades can take advantage of the fact that some products can be produced more inexpensively elsewhere and therefore are cheaper when imported. Moreover, The mode of transportation for imported goods can involve lower costs than shipments within the US. 2) What are some of the disadvantages Blades could face as a result of foreign trade in the short run? In the long run? Some of the disadvantages include: challenges of a long distance trade and as such it becomes difficult to maintain close relationship between the buyer and the seller. Also, each country has its own language. As foreign trade involves trade between two or more countries, there is diversity of languages. This difference in language creates problem in foreign trade.
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This note was uploaded on 02/29/2012 for the course ECON 123 taught by Professor Prfo during the Spring '12 term at Uni. Joensuu.