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    Case Presentation

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    devrajkinjal
    This document presents a case study on Blades Incorporated, a company that exports roller blades from the US to Thailand and imports rubber and plastic components from Thailand. It discusses how external factors such as inflation in Thailand, competition from other firms in Thailand and the US, Thailand's national income, and fluctuations in the Thai baht exchange rate could impact Blades' business operations and financial performance. The case study also provides sample questions and answers that analyze how changes in these economic conditions would affect the company.

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    Case Presentation

    Uploaded by

    devrajkinjal
    59 views9 pages
    This document presents a case study on Blades Incorporated, a company that exports roller blades from the US to Thailand and imports rubber and plastic components from Thailand. It discusses how external factors such as inflation in Thailand, competition from other firms in Thailand and the US, Thailand's national income, and fluctuations in the Thai baht exchange rate could impact Blades' business operations and financial performance. The case study also provides sample questions and answers that analyze how changes in these economic conditions would affect the company.

    Original Description:

    IMF case chap 2

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    This document presents a case study on Blades Incorporated, a company that exports roller blades from the US to Thailand and imports rubber and plastic components from Thailand. It discusses how external factors such as inflation in Thailand, competition from other firms in Thailand and the US, Thailand's national income, and fluctuations in the Thai baht exchange rate could impact Blades' business operations and financial performance. The case study also provides sample questions and answers that analyze how changes in these economic conditions would affect the company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    59 views9 pages

    Case Presentation

    Uploaded by

    devrajkinjal
    This document presents a case study on Blades Incorporated, a company that exports roller blades from the US to Thailand and imports rubber and plastic components from Thailand. It discusses how external factors such as inflation in Thailand, competition from other firms in Thailand and the US, Thailand's national income, and fluctuations in the Thai baht exchange rate could impact Blades' business operations and financial performance. The case study also provides sample questions and answers that analyze how changes in these economic conditions would affect the company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    A

    CASE PRESENTATION
    ON
    BLADES, INCORPORATED

    PRESENTED TO:

    Prof. Sushil Mohanty
    PRESENTED BY:
    Zanza Patel (Roll no: F 21)
    Kinjal Patel (Roll no: F15)

    Blades. Inc. Case
    Ben Holt is the chief financial officer of Blades Incorporate.
    Blades Inc. is exporting its Speedos roller in Thailand.
    Blades Inc. is importing rubber and plastic components from
    Thailand.
    This components cheaper than similar components in the U.S.
    It is follows a policy of invoicing in Thai baht(Thailand Currency).
    Factors Affecting Blades. Inc.
    1) Inflation
    2) National income
    3) Exchange Rate (Currency Fluctuate)
    4) Competitors
    Blades. Inc. Case Solution
    Q 1: How could a higher level of inflation in Thailand affects Blades
    (assume U.S. inflation remains constant)?

    Answer:
    Higher level of inflation in Thailand can affect Blades. Due to inflation in Thailand
    foreign goods will become cheap. Again inflation will increase in an increase of imports
    and at the same time exports will go down. As a result imports of rubber and plastic
    components from Thailand for Blades Inc. will suffer and it will increase their
    production cost. On the other hand due to inflation in Thailand customers will get
    products from Blades Inc. at a lower price relative to others, which will increase their
    (Blade Inc.) export to rise. Eventually their sales will increase.
    Cont..
    Q 2: How could competition from firms in Thailand and from U.S. firms
    conducting business in Thailand affects Blades?

    Answer:
    The main competitive advantage of Blade Inc. in this case is that they conduct their
    business (both export and imports) from Thailand in Thai Baht (Thailands currency).
    The other competitors who exports in Thailand invoice their exports in U.S. dollars.
    On the other hand because of competitive advantage of Blade Inc. allows importers to
    continue business without less consideration about paying different amounts due to
    currency fluctuations. In case of export Blade Inc. has an advantage of providing
    quality products and flexible pricing strategy, which gives them a good position in
    Thailand.
    Cont..
    Q 3: How could a decreasing level of national income in Thailand
    affects Blades?

    Answer:
    When national income of a country decreases that reflects in a decreasing demand for
    foreign goods. As a result imports on the part of home country decreases. A decreasing
    level of national income in Thailand will reduce their demand for Blade Inc. products,
    which will decrease the sales of Blade Inc.


    Cont..
    Q 4: How could a continued depreciation of the Thai baht affect Blades?
    How would it affect Blades relative to U.S. exporters invoicing their roller
    blades in U.S. dollars?
    Answer:
    A continued depreciation in baht may affect Blade Inc. in their export. Though Blade
    Inc. meet some of their expenses in Thai baht, but in case of currency conversion Blade
    Inc. gets less amount of U.S. dollars because of Thai depreciation. As Thai baht
    depreciates export in Thailand will unlikely to increase. Blade Inc. will be benefited
    against other U.S. competitors because their competitors invoice their product in U.S.
    dollar while Blade Inc. invoice in Thai baht. So if baht depreciates Thai importers have
    to pay more baht to dollar in case of payment to other exporters.
    Cont..
    Q 5: If Blades increases its business in Thailand and experiences serious
    financial problems, are there any international agencies that the company
    could approach for loans or other financial assistances?

    Answer:
    If Blade Inc. increases its business in Thailand and experience serious financial
    problems then Blades can call for loan from International Financial Corporation (IFC).
    IFC not only provides loans to corporations but also purchases stocks. International
    Financial Corporation acts as a facilitator. It provides loans to promote economic
    development of private sector.

    Thank you

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