| Course | MAN-3720 International Management |
|---|---|
| Module | Module 4 |
| Paper type | Module 4 written assignment: international trade, foreign direct investment and global sourcing |
| Length | About 616 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | Bachelor of Science in Business Administration |
| Updated | October 2026 |
Free sample paper for MAN 3720 Module 4
Make Here, Make There or Buy Abroad: Trade and Investment Choices for a Small Exporter
Student Name
Bachelor of Science in Business Administration, Thomas Edison State University
MAN-3720: International Management
Mentor Name
Month Day, Year
Make Here, Make There or Buy Abroad: Trade and Investment Choices for a Small Exporter
Introduction
If sales in Vietnam grow, the company will face a familiar question: keep making everything in Linden, start producing closer to the market or buy some components abroad. Each option changes costs, control and risk. This paper compares the three using the trade and investment concepts of Module 4.
Why Trade and Why Invest
Classical trade theory explains that countries gain by specializing in what they produce relatively efficiently and trading for the rest. Trade barriers, such as tariffs, value added taxes collected at the border and registration rules, raise the cost of crossing borders and can push firms to produce inside a market. Our customs broker estimates that import duty and value added tax together will add roughly 18 percent to the landed cost of a finished purifier in Vietnam, before the distributor's margin.
Dunning (1988) explained foreign production through three conditions, known as OLI. A firm needs an ownership advantage, something it owns that others lack, such as a design or brand. It needs a location advantage, a reason to produce in the foreign country rather than export, such as lower costs or avoiding trade barriers. And it needs an internalization advantage, a reason to keep production inside the firm rather than license or contract it out.
Applying OLI
At current volume, the location advantage is too weak to justify investment. A Vietnamese contract assembler would cut assembly cost by about $6 a unit and might reduce duties by importing parts rather than finished goods, but the saving does not cover the setup, quality control and travel costs until annual volume passes about 30,000 units.
| Condition | Our situation | Implication |
|---|---|---|
| Ownership | Patented filter housing design, certified performance | Yes, worth protecting |
| Location | Lower assembly cost and partial duty savings in Vietnam, but small volume | Weak at today's volume |
| Internalization | Risk of design copying if assembly is contracted | Favors keeping control |
Global Sourcing
Sourcing is a separate choice from where to assemble. Our replaceable filter cartridges are made in Linden from activated carbon imported from Asia and plastic housings molded in Ohio. Kotabe and Murray (2004) argue that global sourcing can build competitive advantage when firms keep core capabilities in house and source components where suppliers have real expertise, but that sourcing everything risks losing the knowledge the firm competes on. Our core is the housing and filter design and the testing that certifies performance; the cartridge shell is a commodity.
Gereffi et al. (2005) show that relationships in global value chains range from simple market purchases to tightly managed ones, depending on how complex the product information is, whether it can be codified and how capable suppliers are. A cartridge shell can be specified in drawings and bought from capable suppliers, so a modular relationship, in which the supplier makes to our specification with its own equipment, suits it.
Recommendation
The company should continue exporting finished purifiers from Linden while Vietnamese sales grow. It should qualify a cartridge shell supplier in Asia, which could lower the cost of replacement cartridges, the product customers buy repeatedly. And it should set a trigger: when annual Vietnamese sales pass 30,000 units, the owners should study contract assembly in Vietnam with design protections, such as keeping filter media production in Linden.
Conclusion
Trade barriers raise the cost of exporting, but they do not by themselves justify foreign production. Dunning's OLI conditions show that the firm's location advantage is weak at present volume, while research on sourcing and value chains supports buying commodity parts abroad and keeping the design at home. A staged path with a clear trigger lets the company grow abroad without overcommitting.
References
Dunning, J. H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1), 1-31. https://doi.org/10.1057/palgrave.jibs.8490372
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78-104. https://doi.org/10.1080/09692290500049805
Kotabe, M., & Murray, J. Y. (2004). Global sourcing strategy and sustainable competitive advantage. Industrial Marketing Management, 33(1), 7-14. https://doi.org/10.1016/j.indmarman.2003.08.004
MAN 3720 Module 4 instructions, in plain terms
In MAN-3720, Module 4 covers international trade, foreign direct investment and global sourcing, and this sample pairs one of the course's five written assignments with it, as the Guided Study syllabus lists the assignments without placing them. Expect to explain why firms trade and invest abroad, how trade barriers affect costs, when producing abroad makes sense and how to organize sourcing across countries. Work through one company with numbers, landed cost or savings per unit for example. A framework such as Dunning's OLI helps structure the decision, and research on sourcing and value chains adds depth. Close on a decision and the sign that would make you revisit it.
Inside the MAN 3720 Module 4 example
The paper frames three choices a growing exporter faces: keep making everything at home, produce near the market or buy parts abroad. A section on trade explains comparative advantage and trade barriers, with an estimated 18 percent added to landed cost. Dunning's OLI conditions are applied in a three-row table, showing a strong ownership advantage, a weak location advantage at current volume and a reason to keep control. A sourcing section draws on Kotabe and Murray and on Gereffi and colleagues' value chain governance to buy commodity cartridge shells abroad while keeping the design in house. The recommendation sets a 30,000-unit trigger for revisiting assembly. The paper keeps production and sourcing separate, which lets it buy a commodity part abroad without moving the core design.
Where the marks sit in the MAN 3720 Module 4 rubric
Mentors grade this assignment on understanding of trade, investment and sourcing concepts, accurate application of a framework, use of figures, critical reasoning and APA style. Papers that apply OLI to a specific firm, condition by condition, earn more than papers that only describe it. Treating sourcing and production location as separate decisions shows clear thinking. Using cost estimates and thresholds shows the managerial focus the course takes. Recognizing risks to the firm's ownership advantage, such as design copying, shows strategic awareness. Credit also goes to papers that admit what the estimates leave out, such as quality control travel or the time needed to train a contract assembler, because those costs often decide the question.
MAN 3720 Module 4 help from the desk
Students lose points by explaining comparative advantage in textbook terms and never reaching a decision, by recommending foreign production because labor is cheaper without counting other costs or by ignoring the risk of losing control of key knowledge. Compare at least two options with numbers. Apply a framework condition by condition. Separate where to produce from what to buy, and set a measurable trigger for revisiting the decision. A free first sample of your MAN-3720 Module 4 assignment can be built on your company's products and markets. Put the cost comparison in a short table so a reader can see where the break-even volume comes from.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Thomas Edison State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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MAN 3720 Module 4 questions, answered
Where can I find a free MAN 3720 Module 4 sample paper?
The paper above compares exporting, contract assembly in Vietnam and cartridge sourcing in Asia for a New Jersey water purifier maker.
What is Dunning's OLI framework?
It explains foreign production through ownership, location and internalization advantages that together make producing abroad worthwhile.
What is global sourcing?
Buying components or services from suppliers in other countries, ideally where they have real expertise, while keeping core capabilities in house.
What are the types of value chain governance?
Gereffi and colleagues describe market, modular, relational, captive and hierarchy forms, from arm's-length buying to full ownership.
Does producing abroad always save money?
No; labor savings must cover setup, quality control, travel and the risk of losing control of designs, which often requires high volume.