GLOBAL SOURCING

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• Cost of Global Sourcing
• Currency Exchange Rates
• Organizational and Behavioural Issues
• Export Administration Regulations
• Foreign Trade Zone

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GLOBAL SOURCING

  1. 1. Purchasing and Supply Chain Management by W.C. Benton Chapter Ten Global Sourcing
  2. 2. Learning Objectives1. To learn what factors/forces increase foreign trade2. To learn the basics of global sourcing.3. To learn how total costs are determined.4. To understand the hidden costs of global sourcing. 10-2
  3. 3. Learning Objectives5. To understand the quantitative and qualitative aspects of global sourcing.6. To learn how to critically analyze various global sourcing alternatives.7. To learn how to effectively use foreign trade zones.8. To learn how to negotiate in different countries. 10-3
  4. 4. Global Outsourcing• As an example, outsourcing is currently perceived as key to automotive suppliers’ survival, and is being driven by consumers in the price-pressured global market.• Even as different cohorts take different positions on the overall merit of global outsourcing, the reports and discussions nevertheless have one theme in common. 10-4
  5. 5. Global Outsourcing• The focus has been on a single aspect of outsourcing: the migration of jobs, and, in particular, the outsourcing of white-collar jobs.• A few countries, notably India and China, are often targeted as the ones that are displacing American workers by offering cheap labor.• The intense attention on the outflow of work to overseas locations has generated fear about which jobs or professions will be outsourced next 10-5
  6. 6. Costs of Global Sourcing• The costs of global sourcing include some of the same costs found in domestic sourcing; there are also costs that are different.• These costs are grouped into the following categories: administrative, foreign, and common.• Exclusively foreign costs are those that would not be incurred if a domestic source were found.• Examples of these costs are duty charges, customs fees, import fees, and currency exchange costs. 10-6
  7. 7. Costs of Global Sourcing• Ocean and air freight could be mentioned, but these are part of the transportation costs of a good that would be incurred from any source.• Many of these exclusively foreign costs are established by governments and are very difficult to avoid.• Finally, there are those costs that are common to both global and domestic sourcing. 10-7
  8. 8. Common Costs• Direct labor and materials costs, lead-time costs, transportation costs, and inventory costs are a part of both domestic and offshore sourcing.• Transportation costs, inventory costs, and lead-time costs tend to be higher when sourcing globally.• On the other hand, labor and materials costs are often lower for firms in developing countries. 10-8
  9. 9. Currency Exchange Rates• One of the most important variables to consider is the exchange rate of currencies.• Since predicting the fluctuation in currency markets is extremely difficult, foreign purchases may actually cost more or less than expected depending on the length of the contract. 10-9
  10. 10. Exchange Rates• Depending on the performance and strength of the dollar, goods can cost American firms different amounts from what’s expected.• When the dollar is weak, the final cost of goods tends to be relatively more than originally agreed upon.• When the dollar has a strong performance over the life of a contract, a firm can realize savings through the exchange rates. 10-10
  11. 11. Organizational and Behavioral Issues• Firms can run into problems when global sourcing is introduced into their organizations.• The resistance of the firm’s buyers to learn to evaluate global sources is the reason for most of the problems. An attitude of “if it can’ be bought here in the U.S.A., it can’t be bought anywhere” can be seen with some purchasing departments. 10-11
  12. 12. Organizational and Behavioral Issues• Many buyers simply do not want to learn about the other countries with whom they will be dealing.• There are many ethical considerations that you must learn in order to be successful. Many companies hire brokers to do their sourcing.• Lead times and delivery times can create problems also. Longer times can increase inventory needs and drive up carrying costs.• The extended lead time also might push back the date at which a firm is able to introduce new products to the market. 10-12
  13. 13. Global Sourcing Issues• A third problem companies face in global sourcing is communication. Many times there are delays and confusion in translations.• Sending documents via couriers or the postal service is often time consuming and creates problems of obsolescence, more confusion, and late or even lost deliveries.• There has been an increase in the use of the Internet to eliminate the time delay and confusion. 10-13
  14. 14. Global Sourcing Issues• Global sourcing is the trend of the future.• Supply management is becoming very important to the survival of both American and offshore firms.• In certain industries, using foreign suppliers can reduce total costs.• Firms in the apparel and electronics industries that do not use global sourcing could find themselves out of business when competing with firms that source globally.• Global sourcing is by no way expanded to completely replace domestic sources; however, it is a way to meet a competitor’s challenge and achieve better value for goods all over the world. 10-14
  15. 15. Global Sourcing as a Strategic Sourcing Option• Global sourcing is extremely complicated from a quantitative and qualitative viewpoint. The total cost of sourcing is perhaps the most important variable.• Of course, the costs vary from firm to firm since the appropriate qualitative components of offshore sourcing must be considered. 10-15
  16. 16. Strategic Sourcing• For instance, the associated qualitative risk profiles of (1) the impact of national interest, (2) the ethical consequences of “sweat shop” labor, and (3) hazardous working conditions in some foreign countries must be evaluated.• The quantitative costs are (1) exchange rate uncertainties, (2) direct costs of importation (transportation costs, transaction costs), and (3) indirect importation costs (utilization of fixed assets, pipeline inventories, managerial time, engineering support).• Moreover, the general uncertainty associated with the business cycle makes offshore sourcing a risky proposition. 10-16
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  19. 19. Risk VS. Reward• The advantages of sourcing offshore must be weighed against the associated risk.• This may seem easy enough to accomplish, but there are some not-so-obvious costs that must be considered.• The decision process is complicated by additional uncertainty associated with offshore sourcing.• The buying professional who is considering offshore sourcing must be prepared to fully analyze both the qualitative and quantitative factors.. 10-19
  20. 20. Global Risk Issues Some of these issues are distance, communication, time value of money, quality issues, pipeline problems, staffing issues, and competition.1. Distance. The distance between the buying and selling firm is significant in terms of time zones and physical location. Internet capabilities usually provide a partial solution. However, face-to-face contact is preferred for some sensitive issues. IBM requires the buyer to visit each supplier on a routine basis. Trips offshore are more expensive and time consuming.2. Communication. Communication can be described as the glue that holds together a sourcing relationship. Without effective communication, global transactions between buying and selling firms would be futile. In addition to being absolutely necessary for the completion of the transaction, communication may also reduce or eliminate uncertainty within the relationship. 10-20
  21. 21. Global Risk Issues3. Time value of money. Since most offshore deals require the use of a “letter of credit,” the buying firm loses the use of funds when the letter is established. Suppose the shipments arrive two weeks after the letter of credit is established. For a $1.5 million purchase, the buying firm bears a $60,000 (.02 × 1.5 million × 2 weeks) opportunity cost expense.4. Quality issues. The buying firm must spend the necessary time to correctly specify and articulate quality expectations. Then evaluation makes sure that the sample is from a legitimate production run. Prototypes/lab samples should not be analyzed. Remember, the buying firm is interested in the actual production on the entire batch. In some cases, the buying firm should inspect statistical process control charts to assess projected defect rates and the inspection methods. The buyer should renegotiate the agreement ultimately if the process is out of control. These quality issues can easily increase costs of offshore sourcing. 10-21
  22. 22. Global Risk Issues5. Pipeline inventory. Pipeline inventory issues will always occur when a third party (the shipper) is involved. The problems become pronounced when offshore sourcing is used. Consequently, pipeline inventory problems can sometimes be next to impossible to resolve. It is almost impossible to put specific costs on problems associated with pipeline inventory. The pipeline inventory costs are truly a hidden cost that must be considered when evaluating offshore quotes.6. Staffing. If a buying firm is to be effective with an offshore sourcing strategy, it must either hire experts or develop specialists that are assigned to offshore suppliers. Ideally, these individuals must have experience in purchasing management, quality control, and basic accounting. This cost also must be considered in the evaluation process.7. The impact of increased competition. The above direct and indirect costs tend to add unexpected costs to purchased items. However, the significant benefits associated with offshore sourcing enable the buying firm to gain leverage over domestic suppliers. Domestic firms are well aware that some firms are considering offshore firms in their long-term strategies. 10-22
  23. 23. Protectionism• However, in a survey of U.S. port operators and carriers, 77 percent said they favored a reduction in U.S. protectionist legislation.• Figure 10.1 shows a distinct trend of decreasing tariff rates for goods coming into this country. 10-23
  24. 24. There are many industries and products that are currently protected by such legislation. Although the legal aspects of international sourcing are beyond the scope of this chapter, two examples are given below:1. The EU (European Union) has been limited to a market share of 7 percent of U.S. steel consumption until just recently when 10 years of protectionist legislation expired. • The U.S. government also has set certain limits on machine tool imports to protect that industry. In the past 12 months, we have seen increased public outcry for further protectionism legislation from within the United States.2 According to the 1991 Trade Policy Review of the European Communities, export controls and restrictions may be imposed for a range of specific purposes including national security; protection of life, health, and the environment; and the preservation of national treasures. • The community also readily regulates the importation and exportation of dangerous chemicals. The governing regulation is CR Number 1734/88. Authorizations for the import and export of chemicals are still administered by the individual member states. 10-24
  25. 25. Importance of Negotiations• When negotiating a purchase agreement, there are certain general attributes in dealing with various offshore suppliers.• An attempt will be made to explain the nuances of negotiating with the people of various Western European countries and China. 10-25
  26. 26. United Kingdom Negotiations• Typical trading partners • We can’t assume that the include the United States, English and American businesses operate in the Germany, and other same manner. countries in the European Union (EU). Exports include machinery, transportation • English executives may appear polite and friendly, equipment, petroleum, and but they can be tough and other manufactured goods. ruthless when appropriate. 10-26
  27. 27. The Federal Republic Negotiationsof Germany • Most of the executives you encounter will have attended a university, and 50 percent hold doctorates. The title “Dr.” commands instant respect. Germans tend to be specialists in one industry with multiple company experiences. • Due to technical expertise, German negotiators are extremely cautious. The opponent should be well prepared on technical details. 10-27
  28. 28. France Negotiations • When doing business in France, you will often go through an intermediary contact whose credentials are impeccable. Your choice of intermediary is important. • The best contacts are French people who have ties with the person you want to contact— through family status, money, or schooling. • Schooling is the most important aspect because the elite of French management are linked by having attended prestigious schools. 10-28
  29. 29. China Negotiations• China is now a major player in the • The major problems when doing world economy and accounts for business in China are the more than 6 percent of world language barrier, business trade. This is remarkable for a practices, and a fluid and diverse developing economy. There has legal system. been strong import growth, both for processing trade and for • A well-specified procurement domestic consumption. strategy is a basic requirement when buying from China. 10-29
  30. 30. U.S. Export Administration Regulations Any business or individual wanting to import goods into the United States will have to work with the Export Administration (EA) of the U.S. Department of Commerce. For complete details, consult the U.S. Export Administration Regulations (EAR). Several steps that you will need to be aware of the following: 1. Determine whether the item (s) in question is subject to the exclusive jurisdiction of another Federal agency. 2. Determine if the technology or software is publicly available. 3. For an item in a foreign country, the origin of the item must be determined. 4. For items made in a foreign country, determine whether it is a controlled item in the US. 5. Determine whether the foreign made item is subject to general prohibition. 10-30
  31. 31. Foreign Trade Zones• The FTC Act of 1934 created trade zones to encourage exports from foreign countries.• The act allowed for the storage of goods within the U.S. boundaries without payment until the goods passed to the buying company• The foreign trade zones (FTZs) are operated by the U.S. customs service. When goods enter an FTZ, the goods are classified, inspected, and placed in storage. 10-31
  32. 32. The European Union (EU): Overview and What It Means To Purchasing• The creation of a unified European Union will result in both advantages and problems for the purchasing professional.• The proposed changes must be considered for future transactions with any of the 14 nations that could be adopting the rules proposed by the EU White Paper to the Council of Ministers.• Today the EU consists of 25 member countries. Since the Single European Act (SEA) in 1987, 279 proposals have been brought forth to eliminate most trade barriers; approximately 90 percent of the 279 proposals are now law. 10-32
  33. 33. The EU• The formulation of the European Union will lead to the elimination of customs formalities between countries. There also will be tariff reductions in 4,000 categories of manufactured goods as well as other schedules for reducing trade barriers.• In the past, a great deal of cost has been added to products and components sourced in Europe to cover these multiple custom costs and tariff fees. The lowering of these costs will once again result in lower prices offered to purchasers.• The formation of one European Economic Community has resulted in a single standard for buying goods. This single market also will result in a single value-added tax (VAT), not a different one for each country in which the part is produced.• Currently, these VAT taxes fluctuate from a low level of 12 percent to some as high as 25 percent. 10-33
  34. 34. Countertrade• Countertrade is the exchange of goods for goods in full or partial payment of a sales transaction. Progressive companies must participate in countertrade or risk of losing market share.• Counter trade appears to be flourishing in the current climate, largely because of the recent changes that have occurred in the international arms market since the end of the Cold War.• These changes have affected both the volume of the trade and also the means through which it is financed. There are number of countertrade arrangements. Some of the more popular forms of counter trade are given 10-34
  35. 35. Some of the more popular forms of counter trade are:1. Offsets are commercial 2. Indirect offsets occur where products compensation practices required as or services transferred in an offset a condition of purchase of goods arrangement are unrelated to the and services. specific products referred to in the – Offsets would include specific export agreement. forms such as co-production, – In many developing countries licensed production, sub- where the industrial base and contractor production, and infrastructure are poorly overseas investment or developed, offsets are more technology transfer. likely to be of an indirect nature. – Offsets can be direct or indirect. – As an example, selling military Examples of direct offsets aircraft to a developing country include the manufacture of and making arrangements to German designed naval patrol provide aerospace education for vessels in South Korean. some of the citizens of the developing country. 10-35
  36. 36. 3. Coproduction: 4. Licensed production: Licensed This form of agreement involves production is when the recipient obtains a share of the production the purchaser being given a work for its own order. share in the manufacture of a – The agreement may cover the foreign designed product. assembly of an entire product or – Coproduction is encouraged service. The agreement may be by recipients because of the phased so that the local share of employment and technology production rises over time. transfer implications. An – As an example, the terms of the example would be the 1991 South Korean $5.2 billion coproduction of the British purchase of F-16 fighter aircraft Harrier aircraft by McDonnell from General Dynamics 12 Douglas in the United States. aircraft were to be bought from the US plant, a further 36 are to – Tier I suppliers gain be assembled in South Korea commercial advantages before, in the final phase, South under this form of Korea will produce parts and arrangement when there is a sub-systems for a further 72 high degree of technology aircraft. transfer. 10-36
  37. 37. 5. Sub-contractor production: 6. Technology transfer: In this case a prime Technology transfers occur contractor substitutes an as a result of an offset are existing supplier with one research and development located in the buying agreements conducted in country. the buying country. – As an example, Boeing – Technology transfer can placed sub-contracts also be commitments for with several British firms foreign direct in order to sell the E-3 investment made by the AWACS aircraft to the selling firm to establish United Kingdom. or expand a subsidiary – In some cases this led to or joint venture in the the elimination of US buying country. sub-contractors from Boeings network of suppliers. 10-37
  38. 38. 7. Barter: The non monetary 8. Counter-purchase: The seller exchange of goods-for-goods. As exchanges products for an example the so called oil for Compensatory amounts of food program between Iraq and commodities. the EU was designed as a barter – In the context of developing program. Countries this normally involves primary commodities. – However, some of the actual – Daimler-Chrysler, General Motors deals involved illegal cash and Toyota use counter trade as transactions between some the method of payment in United Nation and the Iranian Argentina. officials. – They established programs that sell – Another example is a deal its products in exchange for grain. between the UK and Saudi – The grain is then traded through an Arabia which included the intermediary for dollars and not in the heavily devalued peso. purchase of military aircraft with associated training and – It is not as simple as that, the car support, civil aircraft, companies has to negotiate with the intermediaries and the helicopters, naval ships and purchaser over not only the construction projects is a classic quantity of grain, but also its case of barter. quality, availability and optimum market price on the day of the sale. 10-38
  39. 39. Additional Graphics for Chapter 10 10-39
  40. 40. Table 10.1a Top U.S. Trade PartnersRanked by 2008 U.S. Total Export Value for Goods 10-40
  41. 41. $ millions - 100,000 150,000 200,000 250,000 50,000 1 Canada 2 Mexico 3 China 4 Japan 5 Germany 6 United Kingdom 7 Netherlands 8 Korea Brazil France Belgium Singapore Taiwan Australia Switzerland Hong Kong I ndia United Arab Emirates Country (Rank) I taly I srael Malaysia Venezuela Saudi Arabia Top U.S.Trade Partners (Exports) Spain Chile Colombia Turkey Russia Thailand I reland 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 - ASEAN - EU-2710-41
  42. 42. Top U.S.Trade Partners (Exports) $ millions - 50,000 100,000 150,000 200,000 250,000 Canada - - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Mexico 2006 China 2007 Japan Germany 2008 United Kingdom Netherlands Korea Brazil France Belgium Singapore TaiwanCountry (Rank) Australia Switzerland Hong Kong India United Arab Emirates I taly I srael Malaysia Venezuela Saudi Arabia Spain Chile Colombia Turkey Russia Thailand I reland ASEAN EU-27 10-42
  43. 43. % Change -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Canada Mexico China Japan Germany United Kingdom Netherlands Korea Brazil France Belgium Singapore Taiwan Australia Switzerland Hong Kong I ndia United Arab Emirates I taly Israel Malaysia Venezuela Saudi Arabia Top U.S.Trade Partners (Exports) Spain Chile Colombia Turkey Russia Thailand Ireland ASEAN 1 2 3 4 5 6 7 8 9 10 11 1213 14 15 1617 18 19 2021 22 2324 25 26 2728 29 30 - - EU-27 Change Change10-43 2007-08 % 2006-07 %
  44. 44. Top U.S.Trade Partners (Exports) % Change -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Canada- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Mexico China Japan Germany United Kingdom 2006-07 Netherlands % Change Korea Brazil France 2007-08 Belgium % Change Singapore Taiwan Australia Switzerland Hong Kong India United Arab Emirates Italy Israel Malaysia Venezuela Saudi Arabia Spain Chile Colombia Turkey Russia Thailand Ireland ASEAN EU-27 10-44
  45. 45. Top U.S.Trade Partners (Exports) $ millions - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Canada - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Mexico China Japan Germany United Kingdom Netherlands Korea Brazil France Belgium Singapore Taiwan AustraliaCountry (Rank) Switzerland 2006 Exports Hong Kong India 2007 Exports United Arab Emirates 2008 Exports Italy 2006 Imports Israel 2007 Imports Malaysia Venezuela 2008 Imports Saudi Arabia Spain Chile Colombia Turkey Russia Thailand Ireland ASEAN EU-27 10-45 -
  46. 46. Top U.S.Trade Partners % Change -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Canada- - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Mexico China Japan Germany United Kingdom Netherlands Korea Brazil France Belgium Singapore Taiwan Australia Switzerland Hong Kong India United Arab Emirates Italy Israel Malaysia Venezuela Saudi Arabia Spain Chile Colombia 2006-07 Export % Change Turkey Russia 2007-08 Export % Change Thailand 2006-07 Import % Change I reland 2007-08 Import % Change ASEAN EU-27 10-46
  47. 47. Table 10.1b Top U.S. Trade PartnersRanked by 2008 U.S. Total Import Value for Goods 10-47
  48. 48. $ millions - 100,000 150,000 200,000 250,000 300,000 350,000 50,000 1 China 2 Canada 3 Mexico 4 Japan 5 Germany 6 United Kingdom 7 Saudi Arabia 8 Venezuela Korea France Nigeria Taiwan Italy Ireland Malaysia Brazil Russia India Country (Rank) Thailand Israel Iraq Netherlands Top U.S.Trade Partners (Imports) Algeria Angola Switzerland Belgium Singapore I ndonesia Colombia Vietnam 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 - ASEAN - EU-27 2008 2007 200610-48
  49. 49. Top U.S.Trade Partners (I mports) $ millions - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 China - - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Canada Mexico Japan Germany United Kingdom Saudi Arabia Venezuela Korea France Nigeria Taiwan ItalyCountry (Rank) Ireland Malaysia Brazil 2006 Russia I ndia 2007 Thailand 2008 Israel Iraq Netherlands Algeria Angola Switzerland Belgium Singapore I ndonesia Colombia Vietnam ASEAN EU-27 10-49
  50. 50. % Change 0.0% -20.0% 100.0% 20.0% 40.0% 60.0% 80.0% 1 China 2 Canada 3 Mexico 4 Japan 5 Germany 6 United Kingdom 7 Saudi Arabia 8 Venezuela Korea France Nigeria Taiwan I taly I reland Malaysia Brazil Russia I ndia Thailand I srael I raq Netherlands Algeria Top U.S.Trade Partners (Imports) Angola Switzerland Belgium Singapore I ndonesia Colombia Vietnam 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 - ASEAN - EU-27 2007-08 % Change 2006-07 % Change10-50
  51. 51. Top U.S.Trade Partners (Imports) % Change-20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% China - - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Canada Mexico Japan Germany United Kingdom Saudi Arabia Venezuela Korea France Nigeria Taiwan Italy 2006-07 % Change Ireland Malaysia 2007-08 % Change Brazil Russia India Thailand Israel Iraq Netherlands Algeria Angola Switzerland Belgium Singapore Indonesia Colombia Vietnam ASEAN EU-27 10-51
  52. 52. Top U.S.Trade Partners (Imports) $ millions - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 China - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Canada Mexico Japan Germany United Kingdom Saudi Arabia Venezuela Korea France Nigeria Taiwan I taly Country(Rank) I reland Malaysia Brazil 2006 Exports Russia 2007 Exports I ndia 2008 Exports Thailand I srael 2006 I mports I raq 2007 I mports Netherlands 2008 I mports Algeria Angola Switzerland Belgium Singapore I ndonesia Colombia Vietnam ASEAN EU-27 - 10-52
  53. 53. Top U.S.Trade Partners (I mports) % Change-30.0% -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% China - 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Canada Mexico Japan 2006-07 Export % Change Germany 2007-08 Export % Change United Kingdom Saudi Arabia 2006-07 I mport % Change Venezuela 2007-08 I mport % Change Korea France Nigeria Taiwan I taly I reland Malaysia Brazil Russia India Thailand I srael I raq Netherlands Algeria Angola Switzerland Belgium Singapore I ndonesia Colombia Vietnam ASEAN EU-27 10-53 -
  54. 54. Table 10.2Exchange Rate Indexes 10-54
  55. 55. 140 USD120 EUR100 GBP JPY 80 CAD 60 AUD 40 CHF 20 RUB CNY 0 ZAR 1 USD Inverse (1 1 EUR Inverse (1 1 GBP USD) EUR) MXN 10-55
  56. 56. 140120100 1 USD Inverse (1 USD) 80 1 EUR 60 Inverse (1 EUR) 40 1 GBP 20 0 USD EUR GBP JPY CAD AUD CHF RUB CNY ZAR MXN 10-56
  57. 57. 140120100 1 USD Inverse (1 USD) 1 EUR80 Inverse (1 EUR) 1 GBP604020 0 USD EUR GBP JPY CAD AUD CHF RUB CNY ZAR MXN 10-57
  58. 58. Table 10.5Average Tariff Rates for the G-20Countries and Selected Threshold Countries 10-58
  59. 59. Average Tariff Rate (% ) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Morocco Vietnam Pakistan I ndia Malawi Mexico Brazil Republic of Korea Argentina Russian Federation TurkeyCountry/ Territory China Norway South Africa I ndonesia Chile Canada European Communities Japan Saudi Arabia United Arab Emirates Australia United States Singapore 10-59

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