International Business: Competing in the Global Marketplace
International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Chapter 16, Problem 2CDQ
Summary Introduction

Case summary:

Company E is the airplane manufacturer of a B Country. This is the fourth largest airplane manufacturer in the world. E Company has to import many raw materials, component parts and other related items to Country B to attain a top four position in the industry.

But Country B’s government makes importing a difficult job. The number of suppliers and products are incredible length that is products more than 300,000.this leads to affect the efficient and effective operation and a well-structured importing to Country B.

The World Bank states that importing Country B is the toughest task and the tax implication is very difficult among all others.

Characters in the case:

  • Company E
  • Country B

To discuss: Whether the aircraft manufacturers should try to consolidate the parts into a smaller set of suppliers.

Introduction:

Export refers to sending of goods from one country to another country and whereas import refers to receiving goods from one country to another country.

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Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: -The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor. -The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is: A) $362,000 B) $390,000 C) $412,000 D) $318,000 E) $340,000
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