Understanding Business
Understanding Business
11th Edition
ISBN: 9780078023163
Author: William G Nickels, James McHugh, Susan McHugh
Publisher: McGraw-Hill Education
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Chapter 3, Problem 2VC
Summary Introduction

Case summary: EBC is cycle Manufacturing Company and in the early 2000s many bicycle manufacturer started manufacturing of mountain and speed bikes but they engaged in use of stick with cool, upright bike perfect for cruising City Street which made bikes more comfortable. As a result, bike of EBC became more famous. They decided to open its manufacturing site in T country  where they can easily export bike to neighboring AN country nation like C country. They also started to import bikes into the US country which is actually cheaper for them than producing on its home soil. EBC is rapidly growing day by day but T a multi corporation bought EBC and now they can use the T’s established distribution network to reach new markets more quickly and effectively.

Characters in the case: The characters in the case are EBC a cycle manufacturing company and T a multi corporation with offices in Wisconsin, the UK country and G country

Adequate information: EBC is doing well in the market because of their uniqueness in model, customer prefer their bikes more and so they decided to enter into global market with better technology which will give them comparative advantage against their bigger competitors.

To determine: Whether EBC have to follow the law of T country or the law of the US country

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