International Business 13th Edition by Donald Ball,Michael Geringer,Michael Minor ,Jeanne McNett

Exercise 7

Use the globalEDGE site (http://globalEDGE.msu.edu/) to complete the following exercises:
Struggling to remain competitive in the medical devices industry, your firm has decided to begin sourcing components internationally. Though your firm's current operations are only in the United States and Germany, you must assess the relative costs for manufacturing medical devices in a variety of cities worldwide. Your manager, previously a consultant with KPMG, indicates that the Competitive Alternatives surveys published annually by KPMG may assist you. Develop a brief report addressing the following questions: (a) Which three cities in the survey have the lowest and highest manufacturing costs for your firm's specific industry? (b) Do you think that changing your firm's sourcing strategy will resolve the current problems? Why or why not?