Cost Differences between Selling into the US and the EU
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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.
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Solution Summary
The author describes the main cost differences between selling consumer products into the US and the EU markets.
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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 ...
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