This website uses cookies to ensure you have the best experience. Learn more

Blades Case 13 Essay

506 words - 3 pages

Blades, Inc. Case, International Financial Management

1. The overall benefits from considering DFI in Thailand is maximizing profits and minimizing costs. Given the current situation, there are several things that would factor in a positive Direct Foreign Investment. First, Blades generates higher profit margin in Thailand. In addition, the cost of materials is significantly cheaper in Thailand. DFI in Thailand would diversify the risk. In other words, Blades would not be solely reliant on the U.S. economic conditions. Finally, Blades would increase its overall market share.
2. The main tradeoff is between the initial outlay required to invest and operating under
uncertain economic conditions. If Blades were to engage in DFI now, the initial outlay
will be low. However, the ...view middle of the document...

, prior to making this decision. Scenario analysis would be useful because we can see the possible outcomes and the changes for worst, best, and average situation. We could go from there. Based on the current situation, however, I would advise Ben Holt to wait with the DFI.
3. Again the main tradeoff is profits versus the risk of poor economic conditions. If Blades
renews the agreement with the retailer for another three years, it will tie itself to relatively
low prices it charges the Thai retailer. If economic conditions improve, there would be
an expected increase in the demand for Blades’ products. Blades would generate higher
profit margins if decided to enter the market through the subsidiary, or construct a more
favorable deal with another retailer. On the other hand, if economic conditions continue worsen, the agreement would be profitable for Blades. Again I believe that a set of financial analysis are needed prior to making this decision.
4. Given all the conditions mentioned, Thai government would have to consider the impact
of Blades subsidiary on the employment, as well as the impact of Blades subsidiary
to local businesses. Generally, Blades could reduce the unemployment rate if they were to commit to employ local workers. However, Thai government should be concerned about the local businesses. In the long run, companies like Blades could run Thai competitors out of business, thus increasing the unemployment even more. In reality, it all depends on the government policy to allow foreign investments. I believe that Thai government would most likely welcome MNC’s subsidiaries in order to deal with the unemployment in a short run. Another promising solution would be possible mergers and acquisitions.

Madura, J. (2012), International Financial Management (11 Edition ed., pp. Chapter 13). South-Western Cengage Learning

Other Papers Like Blades Case 13

Origins Of Iceskates Essay

5508 words - 23 pages Mariana. It is dated 1539 (Barbin, 2014). This puts a claim to Sweden and the Scandinavian theory. It depicts two men using what wooden skates, with a stick as a forward propulsion mechanism. Nam Catzel 6 ORIGINS OF ICE SKATES INVESTIGATIONS INTO THE ORIGINS OF ICE SKATES The British and the Italian scientists have made a case for the Finnish to have been the originators of ice skating. The new study suggests that 5000 years ago

P&G Strategy Essay

1318 words - 6 pages several new products from Gillette Company such as razors and blades and it obtained several new production lines from Gillette without the expenses on research and development. As a result of acquisition, the growth rate of net earnings of P&G in personal beauty area in 2005 was much higher than previous year. (P&G Annual Report, 2005) In this case, P&G used a related diversification strategy to increase its economics of scope

Adtopia Network Design

3890 words - 16 pages could provide the Supervisor Engine 32 instead. This does not offer the same performance, but is approximately one third of the price. We would not be able to use the same type of blade in this case, because CEF720 enabled blades are not compatible with the Supervisor Engine 32. Instead of using a separate Catalyst 4948 switch for connecting the servers, we could connect the servers directly to the 6500 switch. Each of the six Cisco 3560

Information Technology

1792 words - 8 pages differences between moving and copying 8 Multiple clipboards 9 Use in healthcare 10 Use in software development 11 See also 12 References 13 External links History[edit] Origins[edit] The term "cut and paste" comes from the traditional practice in manuscript-editings whereby people would literally cut paragraphs from a page with scissors and physically paste them onto another page. This practice remained standard into the 1980s

Mayan Religion

1937 words - 8 pages of religious officials, an important device or object was buried with Mayan priests. In this case, the stings of stingray and obsidian blades, both used for drawing blood, are found (Thompson, 176). Some stelae depict scenes of the chacs holding down a sacrificial victim to remove his or her heart, such as on a Classic Period stela at Piedras Negras (Thompson, 176). Thompson states that “it was customary to smear the hearts and blood of the


1970 words - 8 pages wit 4 % formaldehyde or 0.3 % copper oxy chloride to kill the pathogenic spores in the soil.Advantage of raised nursery bed 1. Water movement will be uniform and drainage of excess water is possible (In the case of flat bed water moves from one end to the other and there is possibility of washing away of seeds). 2. Germination percentage of seeds is normally high. Operations like weeding and plant protection measures are easy.Media for

Corporate Finance

3390 words - 14 pages may show a weak fundamental change in the company’s market and product line (Little, n.d). From the case study’s quarterly report, it is observed that the basic EPS has slipped tremendously both on quarter to quarter and year on year. The expenditure for Suzlon did not reduce much as total income has dropped for Q3 which indicated a difficulty in maintaining existing sales income and extra cost on faulty blades replacements. Hence, if Suzlon’s

Nike Swot Case Study

1895 words - 8 pages Nike Case Study Nike was founded in January 1964 by Bill Bowerman, a track and field coach at the University of Oregon and Phil Knight, a University of Oregon student and middle-distance runner under Bowerman. To satisfy coursework requirements, Knight decided that he would make low cost running shoes in Japan and sell them in the US. He engaged the help of Bowerman who was interested in developing a lightweight running shoe. The business

Post-Earthquake Relief Action

2859 words - 12 pages Research Methodology Post-Earthquake Relief Action Contents 1. Abstract 2. Background 3. Literature review 4. Aim 5. Hypothesis 6. Scope 7. Method of Data collection 8. Survey Questionnaire 9. Gujarat’s Vulnerability to Earthquake 10. Case Study: Bhuj Earthquake 11. Drawbacks of the Bhuj earthquake 12. Gujarat State Disaster Management Authority (GSDMA) 13. Data Analysis 14

Attachment Theory

2906 words - 12 pages Psychologist 13, 673-685 [Accessed 14 December 2010] Howe, David. (1995). Attachment Theory for Social Work practice. Palgrave Publishers Ltd. Juffer, F., Stams, G. J. J. M., & van Ijzendoorn, M. H. (2002). Maternal sensitivity, infant attachment, and temperament in early childhood predict adjustment in middle childhood: The case of adopted children and their biologically unrelated parents. Developmental Psychology, 38, 806-821. [Accessed 5


4660 words - 19 pages tampering [13]DISADVANTAGES OF RFID•Passive tags (RFID tags equipped with no battery) cannot be read near the metal or liquids. Prone to physical/electrical damage due to environmental conditions. For example, tags that are subjected to space exploration may encounter extreme temperatures. The tags required to be designed for a given application, and may be costly when designed for use under extreme environmental conditions.•The American

Related Essays

Hydro Turbine Runner Design And Manufacturing

2867 words - 12 pages of five components which are volute, stay vanes, guide vanes, runner and draft tube. The hydraulic performance of the turbine depends on the shape of the components; especially on the shape of the runner blades. The design parameters for the other components are affected by the runner parameters directly. Runner geometry is more complex than the other parts of the turbine. Therefore; to obtain accurate results and meet hydraulic expectations

International Finance Essay

9003 words - 37 pages Continuing Case Problem: Blades, Inc. 1. What are the advantages Blades could gain from importing from and/or exporting to a foreign country such as Thailand? ANSWER: The advantages Blades, Inc. could gain from importing from Thailand include potentially lowering Blades’ cost of goods sold. If the inputs (rubber and plastic) are cheaper when imported from a foreign country such as Thailand, this would increase Blades’ net income. Since numerous

Terrorism In Canada: Air India Flight 182 Disaster

944 words - 4 pages , Japan arrived at its destination without incident. However, at 7:13 London time, a suitcase exploded while being unloaded from the plane, killing two baggage handlers and injuring others. The luggage for M. Singh was transferred in Toronto to the Air India flight. At 8:13 London time, the pilot radioed that everything was normal as the plane started it's descent into London's Heathrow Airport. Moments later, the plane exploded, and crashed from

Traumatic Injury Essay

1216 words - 5 pages Running Head:– CASE ASSIGNMENT Traumatic Injuries Fall 2011 Question 1: The National Institute for Occupational Safety and Health and Safety has recommended using epidemiologic techniques to reduce the incidence and severity of traumatic injuries.  How can epidemiologic techniques mitigate against traumatic injuries? |The term “Epidemiologic” is an adverb of the word “Epidemiology”. The etymology of the word “epidemiology