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Excess production from the Asian rim may relieve this pressure and ease any rising demand in the United States.
Eastvaco maintains 30 sales offices in the foreign countries, therefore, having marketing experience on an international level. Its marketing experience and strategies can cause it to be one of the leading papermaking organizations in the Asian market. Eastvaco must comply to the federal and state environmental laws and regulations which results in the distraction of capital and an increment in its operating costs unlike the Asian rim.
However, the currency exchange rates may greatly affect Eastvaco's business in the Asian market. The supply cost may outsource the net sales of the company. Another reason worth mentioning is the skilled labor suppliers in Asia. Eastvaco operates major research facilities in the United States which provide process and product support for its manufacturing operations. These research facilities will not be present in the Asian region. The company also has separate staff for each product-related...
Furthermore, Eastvaco owns a many foreign and domestic patents which are of great material importance.
12c.
The most important thing for a company is to provide better product quality with increased overall revenue. Taking this into consideration, it is a good recommendation for Eastvaco to expand its business in the Asian market. The high demand of the raw material and lower labor cost in the Asian region would result in greater sales for Eastvaco. Furthermore, the forest reserves in the Asian rim can result in more production for the Eastvaco. In addition, the government laws and regulations of the Asian region do not greatly affect Eastvaco's operating costs.
References
Zhao, Guang, and Guofan Shao. "Logging Restriction in China: a Turnin Point for Forest Sustainability." Journal of Forestry 100 (2002): 34-38
http://www.tree.org/c1.htm
http://en.wikipedia.org/wiki/Tetrahydrocannabinol
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