Answer to Question #231280 in Macroeconomics for Botshelo

Question

How can export and imports benefit a company like Volkswagen in relation of to resource, skills and capital

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. Importing as a whole brings forth skilled employees to the company hence making it to produce high quality products. Importing will also increase the resources they will acquire from different countries which cost them cheaply as compared to outsourcing them locally. It will also contribute to acquiring of more capital and capital goods which might be unavailable in their country of operation.