Finance Essays

French Store: FF30,749.39 per sq.mt./10.764 = FF2,856.69 per sq.ft./FF5.537 (exchange rate 14 December 1998) = US$515.93 per sq.ft. X 1.541 = C$795.04 per sq.ft.

Tokyo Store: (911,372 per sq.mt./10.764 = (84,668.52 per sq.ft./115.5 (exchange rate 14 December 1998) = US$733.06 per sq.ft. X 1.541 = C$1,129.65 per sq.ft.

On a per square foot (sq.ft.) basis, the Tokyo store is the most productive.

Q2: Most of the SKUs in the store come from emerging market nations because the costs of production to The Gap are lower in emerging market nations than in more developed economies where labor values are higher. Many of the SKU items will have been produce in more than one emerging market nation for a number of reasons. Among these reasons are that (a) emerging market nations frequently do not possess the necessary levels of capacity and skills to produce all of a product demanded by a global marketing corporation such as The Gap, (b) The Gap may desire to distribute production contracts among a number of emerging market nations to reduce exposure to currency instability, (c) The Gap may desire to distribute production contracts among a number of emerging market nations to reduce exposure to political instability, and (d) The Gap, by distributing production contracts among a number of emerging market nations, can promote price competition among the producers in the several emerging m

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th manufacturers are important to the success of this type of company, but close ties with overseas distributors are also a key factor. EMCs may take title to the goods they sell, making a profit on the markup, or they may charge a commission, depending on the type of products they are handling, the overseas market, and the manufacturer-client's needs. The ETC, by contrast, is demand-driven and transaction-oriented. The ETC can play many roles, but most often acts as an independent distributor, linking buyers and sellers to arrange a transaction. ETCs identify what overseas customers want to buy and work with a variety of manufacturers to fulfill those requirements. Most ETCs take title to the products involved, but some work on a commission basis. They keep up with the markets they serve by continual travel, participating in trade shows in the United States and abroad, and working closely with distributors and customers. The EMC approach has the advantage of emphasizing the exporter's product, where an ETC will react to demand and, thus, may not emphasize an exporter's product. On the other hand, an ETC will take title to the exporter's product, thereby assuming the risk associated with the future sale. Q6: If an overse
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Some common words found in the essay are:
L/C Q7, ETC ETCs, US$ Q4, Russia Indonesia, Round GATT, Federal Reserve, Gap Gap, Q2 SKUs, Q10 Forfaiting, Tokyo Store, emerging market, market nations, letter credit, emerging market nations, gross margin, domestic markets, 14 december 1998, 14 december, december 1998, december 1998 =, company's cost, contracts emerging, production contracts, production contracts emerging, exchange rate 14,
Approximate Word count = 1862
Approximate Pages = 7 (250 words per page)

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