Homework Question on Auto Supply Chain in Spain
The issues that you must focus on should include:
- Import versus export including border and custom issues, foreign exchange etc.
- Competitiveness of the auto-industry in the country.
Homework Answer on Auto Supply Chain in Spain
Spain is classified as the eighth largest manufacturer of auto supply. 83% of the manufactured vehicles are traded in more than one hundred nations in the globe. Nine multinational brands control the market through their supply chain. $291B was attained during the 2013 financial years from export business. Trade of vehicles contributed 10% of the total amount earned. This means that car export amounted to $29b.
Some of the major consumers of these products include France, the United Kingdom, Portugal, china, Italy, and Germany (Eriksson 368).Imported products in the state stood at $324B. These goods include clued petroleum, car parts, and petroleum gas. Some of the materials used in production are sourced from abroad. Custom duties prevalent in the country are as follows: vehicles and other products 17%, and China automotive products come with 48.5% anti- dumping duty and 21% VAT rates.
Thus, import business is an expensive endeavor to engage in as a trader. The foreign exchange rate stands at €1.24 to £1 for amount more than £500 and € 0.49 to $1 for amounts less than $500 (Coia).The industry experiences stiff competition due to globalization and market liberalization. The industries compete for materials and labor resources that are limited in the country. Spain has a shortage of workforce, an action that results in outsourcing labor from other countries.