Page 94 - Business Principles and Management

Chapter

International Environment 4

of Business

4.1 Importance of International Business

4.2 Forms of International Business
4.3 Theories of International Trade and Investment

RE ALITY CHECK

Not Made in America

ake Applegate owned a fish bait and tackle shop in Ely in northern
Minnesota, just outside a region famous for fly fishing. During the long
Jsummer season, anglers—professional and amateur—from all over the
country stopped by Jake’s shop to stock up on lures, baits, and other
supplies en route to their favorite fishing spots. Jake carried a full line of
fishing-related products. They were good-quality, American-made prod-
ucts. Sales were usually quite brisk. By late September, when he boarded
up his business each year for the cold season, he usually had made enough
to sustain himself and his family until April, when he would reopen.
This summer, Jake noticed that fewer tourists were stopping by his store.
His sales were falling. It was not as if people had given up fishing. In fact,
it was becoming more popular as more women took up the sport. Jake was
very concerned.
Jake soon found out what was happening. A Wal-Mart department store
had opened just outside Ely, and it carried a complete range of fishing gear
including many new varieties of colorful and inexpensive lures. Checking out
the prices, Jake found that they were all cheaper than comparable prod-
ucts that he carried. A close look at the packaging and boxes of the prod-
ucts told the story. In small print were the words “Made in Thailand.”

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