Assignment:
Exporting vs. Importing Decision
Prior to beginning work on this discussion forum, read your textbook and review the Big Mac Index in Table above. For this discussion, take the position of an American exporter doing business in the area of your residence and follow these steps:
• Find the price of a Big Mac at your local McDonald's in the United States.
• Based on the list of countries in the "Big Mac Index" Table above of the textbook and using the first letter of your last name, identify a country that starts with that letter on the list. If the country is not listed with that letter, use the second or the third letter in your last name.
• In 200 to 250 words, discuss whether you should be exporting Big Macs or importing the burgers from that country. In addition to the price of a Big Mac expressed in U.S. Dollars in your chosen country, consider other issues that may impact your export or import decision.
Discussion question
Theories of Exchange Rate Determination
Prior to beginning work on this discussion forum, read your textbook, focusing particularly on theories of exchange rate determination in section 8.3. Select one theory and explain it in your own words, illustrating with an example. Your answer should be at least 200 words.
Question 1
Level Versus Chase Production Plan
Prior to beginning work on this discussion forum, read Chapter: Sales and Operations Planning (Aggregate Planning), and Chapter: Managing Production Across the Supply Chain.
Answer Discussion Question: In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?
Question 2
JIT/EOQ/ROP Interrelationships
Prior to beginning work on this discussion forum, read Chapter: Managing Inventory Throughout the Supply Chain.
Answer Discussion Question: The just-in-time (JIT) movement has long argued that firms should
• Maximize their process flexibility so that ordering costs are minimal.
• Stabilize demand levels.
• Shrink lead times as much as possible.
• Assign much higher holding costs to inventory than has traditionally been the case.
Using the economic order quantity (EOQ) and reorder point (ROP) formulas, explain how such efforts would be consistent with JIT's push for lower inventory levels.