After completing the white paper, the CFO told you and your colleagues that the company was considering 4 different countries as possible manufacturing locations for its product, as opposed to continued manufacturing in the United States. As the CEOs decision-making style is analytical, the CFO advised you and your colleagues to draft a group white paper.
Write a 500700 word white paper, plus calculations, including all of the following:
Determine, from only an exchange rate perspective, which of the 4 countries would be the better choice, and why.
Use the data below to calculate and determine your answer.
Include your calculations (Wrong answers will only receive partial credit.).
Show the numerical calculations of why your chosen country is best.
Make mention of the trends in these exchange rates (including your reference source) and show graphs or charts.
Keep in mind that the current exchange rate is an important factor, but so is the trend in exchange rates, which could influence your recommendation. Because the payment will occur sometime in the future, the trend in the rate may cause a different sourcing location to be made.
Use this Web site, http://www.x-rates.com/calculator.html , to learn about trends in exchange rates and to convert one currency to another.
Assume the following in your calculations:
The current U.S. manufacturing cost is $10/unit