Case Study Sanchez Electronic Devices By: Robert Brown, Luis Hernandez, Stephanie and Jacqueline Delcid, Alan Luna, Olivia Shepperd

About Roberto Sanchez Engineer and Manager in a factory Decisions, decisions What product? Location? Where to sell?

Starting Up a Business Chose to make ID tags for PC’s Already new of some potential buyers Located factory near raw material Workers were educated and hardworking Networks helped him sell anywhere

The Business that Flourished Prospered especially in Japan and India Reasons why: Good quality and service Recession made for a weak dollar Foreign purchasers got more for there money

Short Lived Success Prices were lowered because of competitors Economy prospered and dollar increased Tariffs imposed by the government helped at first but was later removed Sales dropped Japan and India sold items cheaper

Pack Up and Move Out Closed factory in Cleveland and opened in Cuidad Juarez, Mexico Reduced quality and faster assembly process Reduced costs, small profit, and is still in business

Specialization Specialization: to produce those goods and services which you can make most efficiently and with the greatest cost advantage What good did Mr. Sanchez specialize in? Reasons? Examples of specialization in a global context?

Mr. Sanchez’s Decisions Government actions Factors that lead to the decision Access to information

Exporting Goods Export: to sell goods or services to foreign markets Countries where devices were exported Relying on Exporting Advantages? Disadvantages?

Exchange Rate Exchange rate: the comparative value of two currencies What role did exchange rates play? How might U.S dollars affect Mr. Sanchez

Importing Goods Import: to sell goods or services made in other countries in your home market Products that were imported to the U.S What is the value in imported products in your community? What is the cultural impact?

Trade Barrier Trade barrier: a governmental policy that affects the flow of trade Trade barrier that helped? What happened when it was removed? Products with barriers or tariffs restricting trade Removing trade barriers No effects? Dangers?

Goals on opening factory? Goals of U.S government policy at the time? How did they change? Who did they change?