Dixon Ticonderoga - Victim of Globalization
Essay by drfarid • January 1, 2013 • Case Study • 249 Words (1 Pages) • 4,763 Views
Case Study No.04
Dixon Ticonderoga-Victim of Globalization
Case Discussion Question and Answer
1) Why do you think that the Chinese apparently have a cost advantage in the production of pencils?
Answer: (1) Low labor cost. (2) Labor efficiency (3) Available raw materials.
2) Do you think that lobbying the U.S government to impose antidumping duties on imports of pencils from China is a good way to protect American jobs? Who benefits most from such duties and who loses? What alternative policy stance
Might the government take?
Answer: Temporary good but long time this policy is not good. American Government benefits most from antidumping duties and Dixon, US Company loses their business.
3) By establishing facilities in Mexico, Dixon became a multinational company. Why has Dixon become a multinational? What are the economic benefits to Dixon of becoming an international business?
Answer: A
3) Now that Dixon has a production operation in China, why does it does it not simply import finished pencils from China to the United States, instead of making those pencils in Mexico?
Answer:
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