By using a contract manufacturer in taiwan electra

This preview shows page 7 - 18 out of 18 pages.

_ By using a contract manufacturer in Taiwan, Electra was able to introduce their products to the global market. _ First, they can export bicycles easily to neighboring countries like China where bicycles are most popular. _ Second, they can import its bikes cheaper than their home soil. _ Finally, the outsorcing of production to a foreign manufacturing plant help Electra keep its costs down.
2. When Electra produced its bike in Taiwan, did the company have to follow the laws of Taiwan or the laws of the U.S? The answer is both Taiwan and US
When Electra produces its bikes in Taiwan, the company must consider the different regulatory forces of each country it conducts business in.
For instance, the contract manufacturer must adhere to all labor, production, and transportation laws in Taiwan. The company must also consider the speed regulations of bikes in America when deciding what to produce
For example in another country, you must follow your head company’s rules and also following the laws of the country’s factory.
3. What major forces impact Electra (or any global producer) in trading in global markets ?
_Employment law : also known as labor law, dictates how companies’ employees should be treated.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture