3 How could a decreasing level of national income in Thailand affect Blades?

Ben Holt, the finance director of Blades plc, has decided to counteract the decreasing demand for ‘Speedos’ roller blades by exporting this product to Thailand. Furthermore, due to the low cost of rubber and plastic in Southeast Asia, Holt has decided to import some of the components needed to manufacture ‘Speedos’ from Thailand. Holt feels that importing rubber and plastic components from Thailand will provide Blades with a cost advantage (the components imported from Thailand are about 20% cheaper than similar components in the United Kingdom). Currently, approximately $15 million, or 10%, of Blades’ sales are contributed by its sales in Thailand. Only about 4%
of Blades’ cost of goods sold is attributable to rubber and plastic imported from Thailand.