U.S. wood-products company
2 references required, 500 words
Suppose a U.S. wood-products company has facilities and employees in Canada providing its raw materials (wood), but has most of its sales in the United States.
(1) What are the most important operational and financial risks in this arrangement?
(2) How can the company pay its Canadian employees, who presumably want Canadian dollars, when its U.S. customers are paying in U.S. dollars? (3) How can it calculate its profit if revenue is in U.S. currency and most of its costs are in Canadian currency?
“examples if any”
2 references required, 500 words
…………………………….Answer preview……………………..
Offshore manufacturing is perhaps one of the many ways businesses try to reduce operational costs by relocating its production plants to areas with cheap labor. However, this trend does not come without a cost. First, consider the transportation cost (Meredith, 1987). Because products are produced in Canada, they have to be transported to the U.S where the market is. The cost of transportation can be higher than the additional labor cost. Furthermore, the transportation time is costly to the company…………………………….
APA
606 words
