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.