Скачать или смотреть Entrepreneurship in International Business (ENG) CH7: Global production and FInance topics for IEN

Here is the English translation for Chapter 7: Production & Operations + Finance.

Chapter 7 Summary: Production & Operations + Finance (Lean Production & Secure Finance on the Global Stage)
This chapter is the heart of "Execution!" When expanding your production base abroad, it’s not just about finding a factory site; it’s about building a resilient Supply Chain and managing Financial Risks to survive volatile exchange rates.

🛠 Key Highlights:
Strategic Production Planning: International production is more complex than domestic! You must make critical decisions on:

Location Selection: Where to set up? Factors include costs (labor/land), logistics (ports/roads), and political stability.

Make or Buy Decision: Should you produce "In-house" to control secrets and quality, or "Outsource" like Nike to reduce costs and increase flexibility?

Lean & Six Sigma (The Cost-Reduction Bible):

Lean Manufacturing: Eliminating the 7 Wastes and using JIT (Just-in-Time) systems to produce only what is needed, pioneered by Toyota.

Six Sigma: Focusing on reducing errors to near zero (Defect reduction) using the DMAIC process to maintain the same quality standards worldwide.

Global Supply Chain Management:

Lessons from Unilever on adapting production for Localization.

Resilience strategies from the "Chip Shortage" crisis, such as diversifying risks and securing backup suppliers.

International Finance Survival Kit: Money matters!

Exchange Rate Risk: Understanding how currency volatility (Transaction/Translation Risk) can make profits vanish instantly.

Hedging Tools: Risk protection tools like Forward Contracts (locking rates in advance) or Options to prevent exchange rate losses.

Transfer Pricing: Setting prices between affiliated companies while complying with tax laws (Arm’s Length Principle).

💡 Case Study & Calculation:
Thailand vs. Vietnam: A real-world production cost analysis! Comparing labor, shipping, and taxes to determine which production base is more cost-effective.

Toyota's Risk Management: Diversifying production bases to mitigate the risks of a strong Japanese Yen.

📉 Words of Wisdom:
"In international business, profit doesn't just come from sales; it comes from efficient cost management and smart financial risk protection."

#ProductionOperations #GlobalFinance #LeanManufacturing #SixSigma #Hedging #SupplyChain