Assignment:
Question 1. If you were running the A.O. Smith Corporation (manufactures water heaters) and had substantially increased sales in emerging markets (like China), where is it likely that you would put your manufacturing facilities and why? (Select all that apply - right minus wrong)
- In/near local markets to contain transportation costs
- Principally in the U.S. for quality control reasons
- In local markets to limit currency exposure.
- Principally in the U.S. due to safety and nationalization concerns
Question 2. A professor (Slaughter) recently wrote an article in the Wall Street Journal about jobs, wages and their relationship to foreign trade.
'Research has long documented that workers at globally engaged companies tend to earn less than workers at purely domestic companies.*
Does the above quote accurately represent his conclusion?