Manitowoc Crane (U.S.) Exports Heavy Crane Equipment

Answer for Manitowoc Crane (U.S.) Exports Heavy Crane Equipment for $2 Only (Instant Download)


Manitowoc Crane (8). Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per year at the yuan equivalent of $22,000 each. The Chinese yuan (renminbi) has been trading at Yuan 7.60/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan 8.30/$, after which it will remain unchanged for at least a decade. Accepting this forecast as given, Manitowoc Crane faces a pricing decision in the face of the impending devaluation. It may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 10% drop in unit volume Direct costs are 75% of the U.S. sales price. Additionally, financial management believes that if it maintains the same yuan sales price, volume will increase at 10% per annum through year eight. Dollar costs will not change. At the end of years, Manitowoc’s patent expires and it will no longer export to China. After the yuan is devalued to Yuan 8.30/5, no further devaluations are expected. If Manitowoc Crane raises the yuan price so as to maintain its dollar price, volume will increase at only 2% per annum through year eight, starting from the lower initial base of 9,000 units. Again, dolar costs will not change, and at the end of eight years Manitowoc Crane will stop exporting to China. Manitowoc’s weighted average cost of capital is 13%. Given these considerations, what should be Manitowoc’s pricing policy?

Export Business Plan

Export Business Plan in $3 OnlyExport Business Plan

Consider the following scenario: You own your own company and would like to go global! Research a potential market and product to get your export operations started and present your findings to potential investors.

• Create a 15- to 20-slide Microsoft® PowerPoint® (plus one reference slide) presentation with detailed speakerÂ’s notes.
• Include at least 3 resources besides the textbook and format them using APA guidelines.
• Explain why and how you made your decision to export to the market you chose.
• Use the outline in Appendix A, and the information you gathered throughout the course to complete the assignment.
Ball, D. A., McCulloch, W. H. Jr., Frantz, P. L., Geringer, J. M., & Minor, M. S. (2006).
International business: The challenge of global competition (10th ed.). New York: McGraw-Hill.

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