Business Decisions Related to Trade Research Paper

Total Length: 869 words ( 3 double-spaced pages)

Total Sources: 2

Page 1 of 3



Also in terms of trade, it would be recommended for the company to conduct several analyses in order to identify the countries with the highest demand for batteries. India for instance, with its numerous technological applications and in its quality of hosting most of the global mobile telephones -- would be expected to be a large consumer of batteries and could as such constitute a desirable trading destination for Larson Inc.

Relative to specialization, this aspect is more delicate, but it would be advisable for the company to become more specialized in the type of batteries most popular within the regions in which it operated. Considering a situation in which Larson Inc. became a batteries supplier in India, it would be advisable for them to specialize in mobile telephone batteries.

3. Evidence and Potential Changes in the Recommendations

The recommendations previously made are all based on the features observable at the international level.

a) the recommendation to save rather than invest is based on the generally unstable state of the global economy

b) the recommendation to not raise funds through the issue of debt is based on the general contraction of the credit market, revealed by the decreasing values of the traded shares and by the decreasing numbers of interested investors

c) the recommendation to take the manufacturing of batteries outside Germany is based on the fact that operating within this country is highly inefficient from a cost standpoint

d) the recommendation to move manufacturing operations out of Germany and into China is based on the emergence of China as a leading economy which provides global players with cost effective, skilled and easily adaptive labor force

e) the recommendation of selling the batteries into China is based on the fact that the country is the largest one in terms of population hosted, with a total of 1,338,612,968 individuals (Central Intelligence Agency, 2010).
Despite the sound reasoning behind the recommendations made, fact remains that they could require modifications, based on future necessities. A first example in this sense is constituted by the possibility that the loyalty of the German customers would be lost as the manufacturing plant exits the country, which means that the customer base would have to be enlarged. A second example is constituted by the necessity to change product specifications and focus more of mobile telephone batteries upon penetration of the Indian market.

References:

2010, the World Factbook -- China, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html last accessed on May 21, 2010

The Outsourcing Institute, China Trends and Opportunities, http://www.outsourcing.com/china_trends/index.html last accessed on May 21, 2010.....

Have Any Questions? Our Expert Writers Can Answer!

Need Help Writing Your Essay?