Unit 3 Chapter 2

Question 0

Supply chain management

Answer 0

Organising the sequence of processes that leads to the sale of the final product. The supply chain may have many different suppliers, often located in different countries. Managers must locate the supplier with the greatest competitive advantage so that costs are minimised.

Question 1

PPP

Answer 1

A way of adjusting monetary values to allow for differences in prices between countries. The cost of living is lower in India than in the USA. One U.S. dollar will buy more in India than in the USA, hence the adjustment to make it comparable. In other words $1,527 in India will buy the same amount of goods as $3,703 in the USA.

Question 2

Supply chain management

Answer 2

Organising the sequence of processes that leads to the sale of the final product. The supply chain may have many different suppliers, often located in different countries. Managers must locate the supplied with the greatest competitive advantage so that costs are minimised.

Question 3

Joint ventures

Answer 3

Collaboration between two businesses. Typically one will provide finance from abroad, while the other provides the local contacts and know-how to get the business going. Joint ventures can be particularly helpful in recruiting suitable employees and dealing with local regulation. In China, they help to insure that relevant permissions can be obtained from the local communist party.