Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Having the bikinis made in New York has made sense so far, but now that our sales volume has grown, it may make sense to

Having the bikinis made in New York has made sense so far, but now that our sales volume has grown, it may make sense to export fabric to another country and then import the finished bikinis to the United States. I know what the respective costs are, but I have no idea what quality control will be like if I offshore production. How should I think about this to make sure Im not too conservative toward risk?

Ask what Mi Ola stands to lose if you keep production here and what the company might lose if you offshore production.

Think about how much you have invested in building relationships with domestic manufacturers and in made in America marketing and whether you want to take an action that will negate that investment.

Ask how Mi Ola benefits from making its bikinis here and how it would benefit from producing bikinis overseas.

Consider what the majority of your competitors are doing and whether you want Mi Ola to be different from them.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

More Books

Students also viewed these Accounting questions