Answer to Question #231279 in Macroeconomics for Botshelo

Question

How can exports and imports benefit a company like Volkswagen in relation of job creation and production line?

Answer 1

Volkswagen is a manufacturing company that has sells its products to the global markets. As a multinational company it depends on sourcing of raw materials from different countries. It also depends on the foreign market in selling their manufactured products. The decisions of importing and exporting will depend on the comparative advantage of the company.

Volkswagen can benefit utilize the opportunity diversifying their production lines thereby creating a strong reputation thereby increasing their sales. Imports and exports create an opportunity for the company to create more jobs for her staff members and even new employees. In this case both the company and its employees will benefit greatly.