Purchase Solution

Cost Differences between Selling into the US and the EU

Not what you're looking for?

Ask Custom Question

Can anyone please assist me, thank you in advance? Looking for about 3 paragraphs commenting on the following...

One way of managing the cost balance in favor of sustainable products is to reduce the total consumer cost, that is the sum of all cost related to a product, comprising price, purchase costs, use costs and post purchase costs. What method would you use to lower the total customer cost? Would you use this same strategy if you were taking an American business into the EU market? Provide examples.

Purchase this Solution
Solution Summary

The author describes the main cost differences between selling consumer products into the US and the EU markets.

Solution Preview

Your question is a bit vague, but I will give you some ideas. I will assume that we are first discussing an American business operating in the US. For US companies, the biggest cost is in the purchased cost. So, that would encourage a US company to outsource to lower cost countries like China or to push for lower cost automation if made in the US.

However, regarding doing business in the EU, depending on the product, the cost structure is quite different. The difference is the EU has strict laws about recycling or end of use rules for a wide range of ...

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

View More Free Quizzes
Related BrainMass Solutions

  • E-Business 400

    Safe Harbor only covers data flows between Europe and the US and it doesn't cover financial services companies because the US and the EU cannot agree on whether the US data protection laws that govern financial institutions meet the EU's 'adequate protection

  • Activity based costing

    228003 Wedig Diagnostics: Unit cost in US and EU; income statements, direct labor v ABC Wedig Diagnostics manufactures two laser photometers that are used in preparing DNA tests.

  • Comparison of EU and US Antitrust Laws

    Simliarities and differences between the Sherman Antitrust Act of 1890 and Articles 81 and 82 of the EU competition law exist both in statute and application.

  • EU Crisis and the U.S.A

    EU is one of the biggest trade partners for the US and thus, the crisis in EU will have a strong impact on the US economy.

  • European Union

    It cost billions and billions of dollars to bring the ex-Soviet bloc nations into the EU, not just in Germany, but throughout Europe as a whole. This has been an incredible drain on the economic stability of the EU.

  • success of an economic union

    In several parts of the world, US made products are perceived to be of a high quality because of relatively higher prices of US products. So the strong positive relationship between price and product quality give US products an advantage.

  • European Union compared to United States Government

    creation of the single market and the corresponding increase in trade and general economic activity transformed the EU into a major trading power.

  • Copyright laws in the US as compared to the European Union

    Two differences between US and EU copyright law are "moral rights" (personal and reputational rights) and "work-made-for-hire" - addressed in more detail below.

  • IFRS v. US GAAP

    The major differences between IFRS and US GAAP are that under the IFRS if inventory is written down, the write down can be reversed in the future periods if specific criteria are met. This is not allowed in US GAAP.

View More Related Solutions