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Operations There Are Several International Issues That Essay

Operations There are several international issues that are relevant to operations management today. Now that business has become globalized, companies source materials from all over the world, and a lot of production at any given facility will be made for export. For a facility that is producing for export, for example, it must be able to accommodate local market conditions for size, labeling, etc. that will require distinct batches for each country.

The decision to produce for an export market is also something that is important. For example, a company may investigate the idea of producing a maquiladora in Mexico and weigh that option against producing domestically, or even sourcing from further afield. There are a number of considerations, including the quality of the local workers, cost advantages, and various tax and duty considerations as well, and the company often strives to design its production system in a way that delivers the best combination of these variables...

For example, the company can look at a variety of outsourcing options. When dealing overseas, however, the company must take into consideration the relative merits of local taxation, costs, labor laws and other factors (Engardio, 2002).
Also, international production is subject to political risk and foreign currency risk. Political risk, for example, is why a large portion of Venezuelan oil is refined in Aruba. Currency exchange rate risk can negate the cost advantages of sourcing from other countries as well, for example inflation in China is causing that country to be less useful as a source of low cost goods than it once was.

2. There are a number of ways to determine demand for my company's new convertible roadster. The first is to estimate the current market size, based on the sales of similar vehicles. This is the starting point for the…

Sources used in this document:
Works Cited:

Hanson, G. (2002). The role of maquiladoras in Mexico's export boom. Rice University. Retrieved November 11, 2012 from http://migration.ucdavis.edu/rs/more.php?id=8_0_2_0

Engardio, P. (2006). The future of outsourcing. Business Week. Retrieved November 11, 2012 from http://www.businessweek.com/stories/2006-01-29/the-future-of-outsourcing
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