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Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price

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Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price of production. Now it is time to apply your knowledge of competitive advantage principles to an illustrative global supply chain management scenario. IN THIS ASSIGNMENT You are taking over the management of soccer ball production and you are seeking competitive advantage by minimizing unit production costs. You currently operate two plants, one in China and one in Vietnam. Each soccer ball has two main ingredients: an inner bladder (balloon) and an outer covering (cover). In all questions, assume that there are no trade costs. The following table summarizes the number of balloons or covers a worker can produce per day in each of your plants. Use the information in the table (above) to answer the following questions. 1. Wages per person per day in China and Vietnam equal $100. If you produce a complete soccer ball (cover plus bladder) in China what is the unit production cost (i.e. the cost to produce one soccer ball)? Simiarly, if you produce a complete soccer ball in Vietnam, what is the unit production cost? At the given wages, assuming each plant produces independently, which location has the competitive advantage

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