International Business

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Student ID

INTERNATIONAL BUSINESS1
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................3
Answer 5....................................................................................................................................4
References..................................................................................................................................6

INTERNATIONAL BUSINESS2
Answer 1
a)
Outsource Insource Offshore Onshore
Apple # #
Samsung # # #
Xiaomi # # # #
b)
Samsung has comparative advantage in producing mobile phones in its own factories,
whereas, in the case of Apple there is no comparative advantage and thus production cost of
Samsung phones is lower in its own factories unlike the case of Apple. Thus, Apple takes
help of Foxconn for manufacturing its products.
c)
It is true that the export competitiveness of iPhone increases due to weakening of
yaun against US dollar1. As the weakening of yuan is greater than tariff imposed on the
import of iPhone, in US it will become cheaper and thus import increases causing an increase
in demand for iPhone in the US.
Answer 2
The decision of Honda regarding closure of the Swindon plant depends on three major
factors. The first factor is no-deal Brexit, due to this the cost of production increases as the
time for production per unit increases due to delay in delivery of parts to the plant. Secondly,
the trade agreement between Japan and EU will remove the tariff from Japanese cars, thus
1 Spence, Malcolm, and Stephen Karingi. "Impact of trade facilitation mechanisms on export
competitiveness in Africa." (2014).