
To Discuss: The reasons on zero transportation costs, no trade barriers and significant similarities among countries with regard to factor conditions firms should increase internationally in order to survive.
Introduction: Transportation costs are the costs caused by a worker or independently employed taxpayers when far from home in a transportable status for business. Transportation costs are a subdivision of transportable costs, which are generally costs, related with business travel, for example, taxi charges, gasoline, parking expenses, phone charges that representatives may acquire and guarantee for repayment.

Explanation of Solution
The reasons on zero transportation costs, no trade barriers and significant similarities among countries with regard to factor conditions firms should increase globally in order to survive are as follows:
The hypothesis of near favourable position proposes that the activities should happen in the nations that can perform them most proficiently, given that distinctive nations are awarded with various variables of manufacturing. If there are no boundaries or expenses to trade, at that point it is likely that numerous productions will be based out of the nations that give the best arrangement of factor endowments. Given area economies, an organization can build up a worldwide web of value creation actions to exploit varying element enrichments in contrasting areas. For firms effectively situated in the nations with the most positive factor endowments for their industry, there may not be a need to grow globally at one point in time.
As factor endowments develop, the firm might need to scatter its value creation activities to those business sectors that offer relative focal points. If the firm is positioned in a competitive market, it will profit by universal development that incorporates its value creation activities in view of the cost position and item separation openings such extension can present. A firm might have the capacity to make due in a d market without universal development, as long as the nearby market is not focused by contenders that have exploited the economies offered by scattering their value creation activities globally. For instance, an unproductive, highly priced domestically owned store that has not yet confronted the passage of Company W in its market.
Want to see more full solutions like this?
Chapter 13 Solutions
International Business: Competing in the Global Marketplace
- Question: Mini-Case- In this case you are asked to assume the role of the advertiser controller at Adams. You will be considering the selection of an advertising agency and the development of an advertising campaign to support the launch of the Admas retail chain in the Spain. Mini-Case Adam's Children Wear Adams retail chain offers garments for 0–8-year-old children. Positioned as a value-for-money brand, Adams clothes are generally purchased as traditional everyday wear.Research indicates that purchasers perceive that their children will be wearing clothing which, unlike that of competitors, is not frequently seen on other children. Reflecting this positioning the Adams’ brand identity features bold colours and an apple logo. Adams has successfully increased its share of the UK market for 0–8-year-olds children’s wear from 2% in 1987 to a position of market leadership today. Potential for further growth within the UK market appears to be limited, and the company feel that expansion…arrow_forwardPlease provide the correct answer to this general accounting problem using accurate calculations.arrow_forwardgeneral accountingarrow_forward
- The variable cost is $16 per unit for a product that sells for $20. For 2,000 units, what is the contribution margin and contribution margin per unit? A. $8,000; $4 B. $8,000; $8 C. $12,000; $16 D. $20,000; $20arrow_forwardgross profit on each glass ??arrow_forwardI am looking for help with this general accounting question using proper accounting standards.arrow_forward
- calculate net income ...?arrow_forwardgeneral accountingarrow_forwardGiven the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Cost Machine Hours January $3,080 14,719 February $2,669 10,205 March $2,806 12,138 April $3,573 18,476 A. $2,669 B. $3,032 C. $1,554 D. $1,471arrow_forward
- MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational PublishingFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
- Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning

