Lobal Environment/ labor (Strategic Management)

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Sherri You have a very key point on being able to use cheaper labor in other markets to develop a companys products and reduce shipping costs. An issue that has actually recently caused problems are for companies that are still having to ship any part of the their products to pacific. Recently McDonalds ran into a shortage of fries in Japan because their fries still come from the United States and have to be shipped to Japan. This shortage actually occurred because of the west coast port disputes in the U.S. This caused McDonalds to have to overnight their fries to Japan at a huge expense to the company. This is a key indicator to companies that whenever any of their products are made in a different country than they are being sold they could run into major shipping or customs issues that impact their sales.