Details Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price of production. Now it is time to apply your knowledge of competitive advantage principles to an illustrative global supply chain management scenario. IN THIS ASSIGNMENT You are taking over the management of soccer ball production and you are seeking competitive advantage by minimizing unit production costs. You currently operate two plants, one in China and one in Vietnam. Each soccer ball has two main ingredients an inner bladder (balloon) and an outer covering (cover). In all questions, assume that there are no trade costs. The following table summarizes the number of balloons or covers a worker can produce per day in each of your plants. 4. Which plant has the comparative advantage in covers? Which has the comparative advantage in balloons? How is competitive advantage in unit production cost (i.e. the cost ranking across plans AD in the previous question) associated with specialization according to comparative advantage? 5. Let us introduce a third production activity. The production of a complete soccer ball now requires a cover, a balloon and assembly, In the case of China, suppose that a worker can assemble 200 soccer balls per day. In Vietnam, a worker can assemble 300 soccer balls per day. Wages in Vietrum are $120 per person per day; wages in China are $90 per person per day. Where do you establish your assembly plant in China or in Vietnam? Details Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price of production. Now it is time to apply your knowledge of competitive advantage principles to an illustrative global supply chain management scenario. IN THIS ASSIGNMENT You are taking over the management of soccer ball production and you are seeking competitive advantage by minimizing unit production costs. You currently operate two plants, one in China and one in Vietnam. Each soccer ball has two main ingredients an inner bladder (balloon) and an outer covering (cover). In all questions, assume that there are no trade costs. The following table summarizes the number of balloons or covers a worker can produce per day in each of your plants. 4. Which plant has the comparative advantage in covers? Which has the comparative advantage in balloons? How is competitive advantage in unit production cost (i.e. the cost ranking across plans AD in the previous question) associated with specialization according to comparative advantage? 5. Let us introduce a third production activity. The production of a complete soccer ball now requires a cover, a balloon and assembly, In the case of China, suppose that a worker can assemble 200 soccer balls per day. In Vietnam, a worker can assemble 300 soccer balls per day. Wages in Vietrum are $120 per person per day; wages in China are $90 per person per day. Where do you establish your assembly plant in China or in Vietnam