This first part i need 3 to 4 slides with complete speaker notes i do not need it to be designed just plain text
The firm manufactures a global positioning system (GPS) that sells for $2,000, with cost of goods sold (hardware 30% and software 70%) of 55% of sales. Compared to the United States, China offers a 7% cost reduction in electronics manufacturing hardware and a 45% reduction in software programming. India offers a 32% reduction in software programming costs. So far, you have been unable to determine whether India has the facilities to undertake the hardware manufacturing. The firm has to invest $300 million. As far as China is concerned, you can send hardware and software manufacturing to China or India.
Assume the following:
- Using the current spot rate for the yuan exchange rate, the 12 -month forward rate is showing a 1.5% weaker U.S. dollar, and the 24-month forward rate of exchange is showing a 2.4% weaker U.S. dollar.
- Using the current spot rate for the rupee exchange rate, the 12 -month forward rate is showing a 1.0% weaker U.S. dollar and the 24-month forward rate of exchange is showing a 2.0% weaker U.S. dollar.