Imagine That a Multinational Corporation Is Considering Closing a Shoe

question 116

Essay

Imagine that a multinational corporation is considering closing a shoe factory in Malaysia in order to begin manufacturing in your city. What arguments could you make in favor of this change, considering factors of site, situation, labor, and environmental issues? Attempt to incorporate your knowledge of the city in your answer.

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Definitions:

Sales Discounts

Reductions in the amount charged to customers as an incentive for early payment, recorded as a deduction from gross sales to calculate net sales.

Pay Accounts Promptly

The practice of settling owed amounts to suppliers or creditors within the agreed payment terms to avoid late fees and maintain good business relationships.

Merchandising Company

A business that purchases finished goods for resale, making profit primarily through the markup of these goods.

Income Summary Account

An account used temporarily during the closing process to summarize a period's revenues and expenses before determining net income.