¶ … Blades, Inc., could obtain from DFI.
Companies such as Blades, Inc. often opt to engage in DFI out of a desire to take advantage of lower labor costs abroad. In the case of Thailand, the nation is less economically developed than Britain, where Blades, Inc. is based. Additionally, due to the depreciation of the baht, labor costs will be even cheaper in Thailand. The location of Thailand has additional financial incentives for Blades given the costs it could save on shipping raw material. Blades currently imports components from Thailand because of the relatively low price and high quality of rubber and plastic components.
Thailand consumers already enjoy Blades' product. Thus, having Blades within the country is a win-win situation, allowing it to save on both labor and shipping costs. Establishing the company within the nation's borders is likely to increase the company's profile and deepen its hold upon Thailand's burgeoning consumer economy. Thailand, as a developing nation, has a still-untapped market base. Its consumers are young, and as the economy improves, they will eagerly begin to explore purchasing new types of leisure-time consumer goods, including rollerblades. Roller-blading is a sport well-suited to Thailand, because it is a warm weather sport and other than the blades, is fairly inexpensive as a hobby.
Q2. Do you think Blades should wait until next year to undertake DFI in Thailand? What is the tradeoff if Blades undertakes the DFI now?
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