Make a relocation or reshoring decision. Your company produces smartphones in China. Your major target markets include China, India, Japan, South Korea, Canada and the United States. Your company, however, is facing unexpected challenges such as trade war between the US and China which discourages product shipments from China to the US market. In addition, increased labor costs in China have made it hard for your company to maximize its location advantages as a manufacturing hub. Although there is a governmental tax incentive (e.g., Chinese corporate income tax for high-tech enterprises is 15% which is much lower than that of the US (average tax rate is 25%: Fed + State tax), increased labor costs, tariffs and transportation costs outweigh the overall tax benefits available in the county. Now, it is inevitable for your company to make a relocation or reshoring decision. (1) Determine important factors affecting the reshoring or relocation decision. (2) You may give each factor a different weight depending upon its importance. The total should be 100% as shown on 120. (3) Reshoring location is the USA and the relocation country is Singapore (4) Do research (or googling) to estimate the cost for each factor; low (10~30), med (40~60), and high cost (70~100) (4) An option with a lower cost should be considered. (5) Discuss, in this excel sheet below, why your option is better and justify your estimation 1 1 1 1 1 1 7 Weight 10% 20% 10% 10% 20% 10% 20% 100% Factors Overall Costs Reshoring (USA) 0 Relocation (Singapore) 0 Low cost (below global average) Med (global average) High cost 10~30 40-60 70 100