Dupont sees oppurtunity to expand in China.
Dupont is deciding whether or not to outsource and expand to China. I believe they decided to do so, because Dupont decided that it would be cheaper to manufacture their chemicals in China. Which in turn, will raise their revenue. I believe that that this will contribute to lower prices in their products also, because they produce more at a lower price which results in cheaper prices most of the time.
3 comments:
Cost may be lower because it is cheaper to produce the products but something that you didnt factor in is the cost for shipping the products back to America. These cost may balance out the money that they would save so thats why they may be relucant to outsource. Plus the workers in diffrent countries may not have the same education so the products they make could lack in quality.
as shown in its income statement, Dupont is in a pretty good shape now; therefore, the company may want to think globally to capitalize on cheaper labor in China and engage in a large scale of cross-national trading. but before entering the global market, Dupond's manager should first evaluate the potential market; the R&D will prevend the company's loss toward unfavorable market.
I think if Dupont want to expand their business to China, there is cheaper for manufacture their chemicals. And I think the wage rate is cheaper too. And the cost per unit derease. But I think the Dupont can not just think about this cost and that is not means the profit will increase. There are a lot other things influence their mind. Like, China is a global market for them.
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