cause and effect of importing
Causes and effects of importing
Eng115
1. Thesis statement The US automotive manufacturer needs to import most of its materials from foreign manufacturers since it creates extensive subsidies in production. Automobile is a competitive business in the United States that requires constant lookout in order to improve supply chain management and cut cost of production. In case this automotive manufacturer wants to extend its profit margin, importing most of its raw material from foreign manufacturers is one of the potential paths towards attaining this objective. Importing material from offshore manufacturers will provide this automotive manufacturer with a host of benefits. These benefits include high quality products, lower prices, and other advantages associated with good international trade agreements. This paperwork provides the causes and effects of US automotive manufacturer importing most of its materials from foreign manufacturers since it a great idea for many businesses.
2. Description of the major cause
One of the major Causes of US automotive manufacturer importing automotive materials from foreign manufacturers is the comparative advantage of low prices. The company needs to outsource most of its materials overseas in order to lower cost of production. Most of the automotive manufacturers in various parts of the world such as China, Japan, and Korea sell their products at a lower price. The three countries are key producers of automotive materials. In this case, they sell them at a subsidized cost. Comparative advantage of low priced material is thus one of the major causes that the company should choose in getting its materials from foreign manufacturers (Scott & Wething, 2012). This advantage means that the company will create cheaper production cost. For the form to remain competitive in the market, it has to reduce its cost of production through getting cheap material and rebranding them to make quality
Eng115
1. Thesis statement The US automotive manufacturer needs to import most of its materials from foreign manufacturers since it creates extensive subsidies in production. Automobile is a competitive business in the United States that requires constant lookout in order to improve supply chain management and cut cost of production. In case this automotive manufacturer wants to extend its profit margin, importing most of its raw material from foreign manufacturers is one of the potential paths towards attaining this objective. Importing material from offshore manufacturers will provide this automotive manufacturer with a host of benefits. These benefits include high quality products, lower prices, and other advantages associated with good international trade agreements. This paperwork provides the causes and effects of US automotive manufacturer importing most of its materials from foreign manufacturers since it a great idea for many businesses.
2. Description of the major cause
One of the major Causes of US automotive manufacturer importing automotive materials from foreign manufacturers is the comparative advantage of low prices. The company needs to outsource most of its materials overseas in order to lower cost of production. Most of the automotive manufacturers in various parts of the world such as China, Japan, and Korea sell their products at a lower price. The three countries are key producers of automotive materials. In this case, they sell them at a subsidized cost. Comparative advantage of low priced material is thus one of the major causes that the company should choose in getting its materials from foreign manufacturers (Scott & Wething, 2012). This advantage means that the company will create cheaper production cost. For the form to remain competitive in the market, it has to reduce its cost of production through getting cheap material and rebranding them to make quality
References: DiLorenzo, T. J. (2007, February 24). Foreign Manufacturers iIn the United States: Should They Be Told To Buy American? Retrieved November 25, 2013, from http://www.cato.org/pubs/pas/pa083.html Griswold, D. (2005, February 24). A Package Deal: U.S. Manufacturing Imports and Output Rise and Fall Together. Retrieved November 25, 2013, from http://www.cato.org/publications/free-trade-bulletin/package-deal-us-manufacturing-imports-output-rise-fall-together Scott, R. E., & Wething, H. (2012, January 31). Jobs in the U.S. auto parts industry are at risk due to subsidized and unfairly traded Chinese auto parts. Retrieved November 25, 2013, from http://www.epi.org/publication/bp336-us-china-auto-parts-industry/