4 Assume a high level of unemployment in Thailand and a unique production process employed by Blades plc. How do you think the Thai government would view the establishment of a subsidiary in Thailand by firms such as Blades? Do you think the Thai government would be more or less supportive if firms such as Blades acquired existing businesses in Thailand? Why?

For the last year, Blades plc has been exporting to Thailand in order to supplement its declining UK sales.
Under the existing arrangement, Blades sells 180 000 pairs of roller blades annually to Entertainment Products, a Thai retailer, for a fixed price denominated in Thai baht. The agreement will last for another two years. Furthermore, to diversify internationally and to take advantage of an attractive offer by Jogs Inc., a US retailer, Blades has recently begun exporting to the United States. Under the resulting agreement, Jogs will purchase 200 000 pairs of ‘Speedos’, Blades’ primary product, annually at a fixed price of $80 per pair.