2. In what ways may the Nigerian company have obtained hard currency? The Tainan Glass Manufacturing Company of Taiwan

(the name of the company is disguised) produces large glass sheets for windows, display cases, and industrial uses. It is one of two manufacturers in Taiwan.

Odd-sized pieces left over from cutting sheets to order are made into glass louvers for use in jalousies.

Jalousies, which are windows or doors made of slats that can be rotated open to allow air to flow through or closed to keep wind and rain out, are very popular in a number of countries with hot climates.

Unless made into louvers, the odd-sized pieces are scrap of no value. In effect, this makes the raw material free, and the only additional cost of making the louvers is the cost of cutting to exact size and polishing the edges. When demand for louvers is exceptionally high, however, full-size sheets are sometimes cut into louvers.

This requires the use of full-cost raw material as well as labor, and the sales prices of the louvers normally reflect total cost for glass as well as labor.