Toybox Ltd. - Toybox Ltd. Has a toy train manufactured in the UK for 3 a train. They sell these trains for 4 to retail stores. The retailer sells the train for 6.

Kidlife Plc. - Kidlife Plc. Has a toy train manufactured in Spain for 1 per train. They must import the toy trains at an additional cost of 1 per train. They sell them for 3.50 to retail stores who then sell them for 6 per train.

1. How much cheaper is it to manufacture a toy train in Spain than in the UK?

2. How much additional money is made by Kidlife Plc when manufacturing costs are taken away from the sale price?

3. How much additional money is made by the retailer?

4. What are the factors to consider when selling a toy train in the UK that has been made in another country.

'Keeping the selling price of a product high while keeping the cost low is the aim of any business trading internationally' - Discuss this statement in your group