Blades plc is a U.K.-based company that has been incorporated in the United Kingdom for three years....

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Blades plc is a U.K.-based company that has been incorporated in the United Kingdom for three years. Blades are a relatively small company, with total assets of only £15 million. The company produces a single type of product, roller blades. Due to the booming skateboard market in the United Kingdom at the time of the company’s establishment, Blades has been quite successful. For example, in its first year of operation, it reported a net income of £3.5 million. Recently, however, the demand for Blades’ “Speedos,” the company’s primary product in the United Kingdom, has been slowly tapering off, and Blades has not been performing well. Last year, it reported a return on assets of only 7 percent. In response to the company’s annual report for its most recent year of operations, Blades’ shareholders have been pressuring the company to improve its performance; its share price has fallen from a high of £20 per share three years ago to £12 last year. Blades produces high-quality skateboards and employs a unique production process, but the prices it charges are among the top 5 percent in the industry.

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Year2012Exam SittingAUGUST 2012 SubjectINTERNATIONAL FINANCE : MARKETS AND MANAGEMENTWeightage25%Submission Date13th July 2012 Regulations A. Late Submission A 10% deduction per day of total coursework marks (excluding weekends and public holidays). Late submission between 5 to 10 days, results in a 50% deduction of total coursework marks. Late submission past 10 days results in an automatic 0% for coursework and the student will be barred from the final examination. B. Deliverables Students must submit all materials supporting their coursework listed in the deliverable section. Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the university/college. The coursework must be done individually and must be entirely your own work. Please make sure that you are aware of the rules concerning plagiarism. If you are unclear about them, please consult your program coordinator/lecturer. The coursework should exhibit formal research skills i.e. with a table of content, proper citations, references, and appendixes. The coursework write up must be able to demonstrate critical analysis and application of both theory and practical issues to the company that you have selected. Student may include additional relevant data/information apart from the proposed guidelines in conjunction to your research. Additional marks will be awarded for such attempt. Your coursework should not be more than 2000 words. You should bind your coursework with the coursework cover as the 1st page. A CD containing the softcopy version of your coursework should be submitted as well (if...

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David · Accepted Answer

1. What are the advantages Blades could gain from importing from and/or exporting to a foreign country such as Thailand? 
Solutions: While importing the plastics / rubber, Blade could get the raw materials at a cheaper cost and can develop the relationship with the suppliers in Thailand, who also can supply to the subsidiary which Blade is planning to start in Thailand. In view of the exports, there is a huge untapped market in Thailand which gives lots of opportunity to Blade for revenue generation. At present there is little number of manufacturers who can supply roller blades to the Thai market. The recent development is that Thailand will have surpass its imported number in comparison to its exported numbers in the next five years and going forward the Thailand will become the hub for the major exports. Thailand is known for the traditional export market1, which are all turned to be the global hub for export. As per Juthamas Ruangvanish  ( Working as senior vice president , in the Global Trade and Receivables Finance, HSBC Thailand, Thai companies has lots of opportunities in order to grow in the international Business. China as a country has an import and export growth of 5.1% and 4.70% respectively in the recent years and the same trend is expected in the next four to five years. This is also evident that the imports in the developed markets will surpass the exports in the same market as the cost of production in the developed market has become very expensive. At present Thailand, China has played an important role in the field of export in the first five months; where in Thailand export to China is contributes 12% of the total exports, which has surpassed in the export numbers to the European Union. The recent trend in Thailand is that it has become more of an export driven country and the corporate present in country try to scale up their production to the neighbouring countries in order to meet the export demand. The major chunk of export from Thailand will be more to the developed counties like China, United Kingdom (EK), Unites States Of America, Brazil etc. It seems the corporate from Thailand try to have more focus on the quality of products and meeting the manufacturing guidelines as per the country specific standards, because exporting to the developed countries earn good amount of margins compared to the developing economies.

Blades plc is a U.K.-based company that has been incorporated in the United Kingdom for three years. Blades are a relatively small company, with total assets of only £15 million. The company produces...

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