A company must choose whether to manufacture a component product in-house or to outsource the work to a third party. Making the component would necessitate spending money that would never be recouped on expensive machinery. Many currency experts predict that the most effective suppliers will be based in nations whose currencies will rise significantly over the next decade. Is it better to (a) make the part in-house or (b) have it made by a third-party provider, and why? In your opinion, which one should you go with? Why?

A company must choose whether to manufacture a component product in-house or to outsource the work to a third party. Making the component would necessitate spending money that would never be recouped on expensive machinery. Many currency experts predict that the most effective suppliers will be based in nations whose currencies will rise significantly over the next decade. Is it better to (a) make the part in-house or (b) have it made by a third-party provider, and why? In your opinion, which one should you go with? Why?

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter3: Exploring Global Business

Section: Chapter Questions

Problem 17CC

See similar textbooks

Similar questions

Which of the following is true about the IMF and World Bank? a. More than 190 countries participate as members of the IMF. b. They aid in dollarizing the economies of foreign nations. c. The IMF lends money to all types of countries, including advanced, emerging, and developing economies. d. The IMF provides loaner currency to countries experiencing hardship. Which of the following payment types offers payment protection to both exporters and importers, as the importer’s bank writes a guarantee of payment? a. A commercial letter of credit b. Payment in advance c. A syndicate d. A banker’s acceptance The supply chains of global businesses such as Boeing, Ford, United Airlines, and the pharmaceutical companies Merck and Pfizer are known as which type of supply chain? a. Enterprise b. Telecommunication c. Global d.…
explain comprehensively what are the challenges faced in using LCS (Local Currency Settlement) ?
9. The process of buying a currency low and selling it high in different markets is known as A. Currency Swap B. Spot exchange rate C. Pegged exchanged rate D. None of the Above
1.the relative merits of fixed and floating exchange rate regimes. from the perspective of an international business, what are the most important criteria in a choice between the systems? Which system is the more desirable for an international business?
Describe the role of banking institutions in global trade. How do they help stimulate global alliances? When things go wrong between a customer and a supplier, how are issues resolved with these important "middle-men"?
Questions - answer both 1 and 2 Reserve CurrenciesA. Which currencies does the IMF currently designate as "reserve currencies”?B. What is meant by "reserve currency" and why are reserve currencies important?C. Identify and explain two advantages related to international trade or the US economy, that the US has because the dollar is a reserve currency. D. Identify and explain one disadvantage related to international trade or the US economy, that the US has because the dollar is a reserve currency. The EuroA. How many countries are members of the European Union? (Since the EU is changing and growing, the textbook could be out of date. Be sure to find the current number of countries.)B. Currently, how many of those European Union members have adopted the euro as their currency? (Be sure your answer reflects current data. The textbook may be out of date.)C. Identify and explain two benefits that the Eurozone brings to its businesses and consumers. D. Identify and explain one…
The type of currencies used in the oil industry and why?
Please help with a discussion on question #2. The base country is Nevis and the countries trading to is Australia, Columbia and Germany. Explain why would it be more profitable to trade in USD rather than XCD and how can the MNC benifit from the trading countries currencies. Use an echange rate table or chart to help strenghten your point You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, is the exportation of a product soldthrough a distributor2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that…
Discuss the various terms of payments for export financing. a) letter of credit and types of letter of credit. b) identify the export credit insurance.
Which of the following is NOT a main use of foreign exchange markets: a. Currency Arbitrage b. Currency Ledging c. Currency Speculation d. Currency Conversion
Introduction to Foreign Exchange Market: Provide an overview of the foreign exchange market and its significance in international business. Your International business is an Oil Company Located in Saudi Arabia 1a. Explain how the foreign exchange market is structured. Discuss key participants, such as banks, corporations, and central banks, and the mechanisms involved in currency exchange. 1b. Identify the currency used in your country. Explain the exchange rate and how it compares to the US dollar.
4. The decrease of exchange rate favors exports a. False b. True