Please answer this question *Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of iterns; clothes, gifts, toys, electrical goods, etc.) if there were an * unexpected downward movement in the UK & that was expected to last for some vears. The department store has 80% of its stores in the UK and 20% of its stores in France
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- Exporters have seen a 20% rise in export enquiries in the last fortnight from the US, Australia and Japan. Also exporters of handicraft, jewellery and shoes have got significant enquiries from the European Union. However, labor-intensive sectors such as gems and jewellery are not able to take decisions about utilization of labor as they grapple with rising labor costs amid social distancing norms. How a export manager in gems and jewellery firm will use Information System (IS) in decision making process in this case.Recently, Gardenia Philippines Reported an increase of 35% in bread sales in Quarter 2 of 2020. How has this possible given the pandemic situation we are experiencing? What do you think makes gardenia's brand successful among its rivals despite the pandemic? What unique characteristics have you observed in their operations? Can a well-planned and well-managed operations and supply chain help build a competitive advantage? Explain your answers comprehensively.Global Reach, Inc., is considering opening a new warehouse to serve the Southwest region. Darnell Moore, controller for Global Reach, has been reading about the advantages of foreign trade zones. He wonders if locating in one would be of benefit to his company, which imports about 90 percent of its merchandise (e.g., chess sets from the Philippines, jewelry from Thailand, pottery from Mexico, etc.). Darnell estimates that the new warehouse will store imported merchandise costing about 16.78 million per year. Inventory shrinkage at the warehouse (due to breakage and mishandling) is about 8 percent of the total. The average tariff rate on these imports is 5.5 percent. Required: 1. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in tariffs? Why? (Round your answer to the nearest dollar.) 2. Suppose that, on average, the merchandise stays in a Global Reach warehouse for nine months before shipment to retailers. Carrying cost for Global Reach is 6 percent per year. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.) 3. Suppose that the shifting economic situation leads to a new tariff rate of 13 percent, and a new carrying cost of 6.5 percent per year. To combat these increases, Global Reach has instituted a total quality program emphasizing reducing shrinkage. The new shrinkage rate is 7 percent. Given this new information, if Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.)
- Pro Recently, Abercrombie & Fitch (A&F) began shifting a large portion of its Asian deliveries to the U.S. from air freight to slower , but cheaper ocean freight. Shipping costs have been cut dramatically, but shipment times have gone from days to weeks. In addition to having less control over inventory and being less responsive to fashion changes, the holding costs have risen for the goods in transport. Meanwhile, Central America might offer an inexpensive manufacturing alternative that might reduce shipping time through the Panama Canal to, say, 8 days, compared to, say, 25 days from Asia. Suppose that A&F uses an annual holding rate 30%. Suppose further that the product costs $20 to produce in Asia. Assuming that the transportation cost via ocean linear would be approximately the same whether coming from Asia or Central America, what would the maximum production cost in Central America need to be in order for that to be a competitive source compared to the Asian producer? The…BMW, owner of the BMW, Mini, and Rolls-Royce brands, has been a major presence in Europe since 1916. The company still sells 46 percent of its cars in Europe, and growth is highest there. However, China is becoming one of BMW’s most important markets. In 2016, the company sold over 520,000 cars in China, and BMW has turned to the Chinese market as a primary focus for future sales. Despite rising sales revenues, BMW is conscious that its profits are often wiped out by changes in exchange rates. The company has pointed out that it was hit particularly hard by China’s currency devaluation in late 2015. BMW Brilliance Automotive Co. Ltd., BMW’s subsidiary in China, imports about half its components from Europe and elsewhere, and it faced major declines in profit because of the negative effects of unfavorable exchange rates. However, BMW did not want to pass those exchange rate costs on to consumers through price increases. Its rival, Porsche, had done that in the United States at the end…Fruity Co is a distributors of fresh good and vegetables. It currently has 15 warehouses in the US from which it supplies produce to grocery stores. Each warehouse has an average inventory level of 3.88 million $. Due to advances in transportation services and infrastructure, management believes that if they reduce the number of warehouses to 10, they would still be able to provide timely replenishment to the grocery stores. What would be the total inventory in the system in millions of dollars, if inventory was consolidated from the 15 warehouses to only 10 warehouses? (Enter your answer in millions of dollars. E.g. if you get 30.24 million $ simply enter 30.24 without the million$ sign. Round your answer to 2 decimal places.)
- BMW, owner of the BMW, Mini, and Rolls-Royce brands, has been a major presence in Europe since 1916. The company still sells 46 percent of its cars in Europe, and growth is highest there. However, China is becoming one of BMW’s most important markets. In 2016, the company sold over 520,000 cars in China, and BMW has turned to the Chinese market as a primary focus for future sales. Despite rising sales revenues, BMW is conscious that its profits are often wiped out by changes in exchange rates. The company has pointed out that it was hit particularly hard by China’s currency devaluation in late 2015. BMW Brilliance Automotive Co. Ltd., BMW’s subsidiary in China, imports about half its components from Europe and elsewhere, and it faced major declines in profit because of the negative effects of unfavorable exchange rates. However, BMW did not want to pass those exchange rate costs on to consumers through price increases. Its rival, Porsche, had done that in the United States at the end…The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. Despite declining sales and difficult economic conditions in 20X1 and 20X2, The Home Depot continued to invest in new stores. The following table provides summary hypothetical data for The Home Depot. REQUIRED a. Use the preceding data for The Home Depot to compute average revenues per store, capital spending per new store, and ending inventory per store in 20X2. b. Assume that The Home Depot will add 100 new stores by the end of Year +1. Use the data from 20X2 to project Year +1 sales revenues, capital spending, and ending inventory. Assume that each new store will be open for business for an average of one-half year in Year +1. For simplicity, assume that in Year +1, Home Depots sales revenues will grow, but only because it will open new stores.Question 1 You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately, you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market, and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?
- Hans Brinker is assistant vice-president for marketing for Skagen Ice Skate Company (SIS). SIS does all of its own manufacturing in Denmark and then distributes worldwide through its sales office. World prices for foreign sales offices are set by the home office. Brinker is now setting the price list for all U.S. sales offices, and needs prices set for the coming year. The current spot rate is ?? = ???? $ = 5.6050, with a one-year forward rate of ?? = ???? $ = 5.5685. The one-year deposit rates for Danish krone and U.S. dollars are 1.5% and 1.35%, respectively. SIS’s best-selling professional figure skate, the Royal Silver Blade, is currently priced at $450 to U.S. retailers. Current inflation estimates for Denmark and the United States are both about 3%. SIS’s policy is to try to absorb about 50% of all exchange rate-induced price increases, but pass along 100% of all exchange rate price decreases if possible. The world skate business is competitive. Brinker phones you and explains…Which of the following is relevant to Kitchenware.com’s decision to accept a special order at a lower sale price from a large customer in China? a. The cost of shipping the order to the customer b. The cost of Kitchenware.com’s warehouses in the United States c. Founder Eric Crowley’s salary d. Kitchenware.com’s investment in its Web siteGiven: A company XYZ in the United States is profitable and pays taxes. XYZ produces “widgets”, and in recent years, the cost of producing each widget has been falling because the price of raw materials has been falling. Each year for the past few years, XYZ has produced significantly more widgets each year than it has sold. True or False: XYZ would report lower Net Income on the Income Statement if it used FIFO accounting versus if it used LIFO accounting Explain your answer.