Assignment:
Importing Country: Brazil
Business Location: Sao Paulo, Brazil
Exporting Countries: (Lima, Peru & Asuncion, Paraguay)
Product(s): Bed Linens & Baby Clothing
Scope: Suppose you own an import business in Brazil, compare & contrast the advantages/disadvantages of sourcing these products from either of the "exporting" countries noted above.
Consider and present all scenarios in which tariffs/import taxes may be considerably lower.
Describe any agreements between the three countries that may help your company save money as it pertains to these types of products. Be sure to elaborate as this is particularly important.
What ship modes would you consider?
Consider scenarios in which a portion of the production of your "finished goods" may be initiated in one country and finished in the other. For example, "Pima" Cotton is only sourced in Peru. Are there any benefits to producing a portion of the "Pima Cotton Bed Sheet Sets" or "Pima Cotton Baby Clothing" in Peru and finishing the process in Paraguay? Think about it from a "Country of Origin" standpoint. How does that help or hurt your Brazilian business. Please describe the pros and cons.
What are some of the pro and cons of importing the raw material only and making your bed sheet sets and baby clothing in Brazil?