Part 4 Case Analysis (20 points) 1. Landed cost calculation. There is a shipment of a 20' container of goods from China to Australia, please calculate the landed cost and selling price per piece of the imported products quoted by AUD according to the following information. (6 points) 100pcs of furniture items 10,000CNY per piece, Incoterm - FOB, Start from Shanghai Port China to Sydney Port Australia See Freight 20GP 30,000CNY, Exchange Rate 1 AUD = 5CNY, Local import costs and charges from the freight forwarder 850AUD, Split up additional costs over the volume of the products A 5% import duty rate will apply to the FOB value of imported goods, 10% import tax is charged on the final value of imported goods, The margin is assumed to be 15%. 2. Outsourcing Crimson Consulting Group is a California-based firm that performs global market research on everything from routers to software for clients including Cisco Systems, HP, and Microsoft. Crimson has only fourteen full-time employees, which would be too few to handle these market research inquiries. But Crimson outsources some of the market research to Evalueserve in India and some to independent experts in China, the Czech Republic, and South Africa. "This allows a small firm like us to compete with McKinsey and Bain on a very global basis with very low costs," said Crimson CEO. Question (1) Why do companies outsource globally? Explain the advantages and disadvantages of outsourcing. (8 points) Question (2) What are some ways in which to ensure quality from unknown suppliers? (6 points)