9. The emergence of the South African market offers an opportunity for Renault to build CBUs in South Africa.

a. Based on the data from the case, as well as your best assumptions, compare the freight, customs and inventory costs for the three alternatives:

(i) shipping CKDs from Romania and building CBUs in South Africa to serve the South African market; (ii) building CBUs in Romania for the South African market; (iii) shipping CKDs from Romania to Morocco and building CBUs in Morocco to serve the South African market.

b. What are the pros and cons of building CBUs of Logan cars in South Africa?