1. What are the advantages Blades could gain from importing from and/or exporting to a foreign country such as Thailand?

First of all, Blades, Inc. will lower its cost of goods sold from importing from Thailand, leading a increase in the net income due to the fact that the inputs from foreign countries such as Thailand are cheaper than they are in the US. One of the reason making Blades, Inc. ‘s prices to be one of the highest in the roller blade industry is not importing rubber and plastic from foreign countries that their competitors are already doing it. Furthermore, there will be a long rage plans in Thailand that they can seek the opportunities of creating connection which some Thai suppliers. When the chance comes, Blades will be the first firms to sell roller blades in Thailand which its has a huge competitive advantage.

2. What are some of the disadvantages Blades could face as a result of foreign trade in the short run? In the long run?

Entering the international business world will bright some potential disadvantages to Blades, Inc. Current fluctuations in the Thai baht is the first problem. Without adjusting the price of the Thai suppliers, the cost of the inputs can become more expensive over time if the bat appreciates. However, if Blades start selling rolling blades in Thailand, the sales would increase in dollar if the baht appreciates, even if Blades does not increase its prices. And the opposite will also be true, when dollar appreciate, it will decrease the prices of inputs; however, a decrease in sales in Thailand will also happen. On the other hand, Blades, Inc.’s business condition will attach to the condition of Thailand. For example, Thailand is known as a country with political in recent years, it will negatively affect Blades.

In the long run, Blades should also be worried about the domestic competitors. If Blades have a good