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Thread: Benefit out of the situation

  1. #1
    Platinum Member
    Join Date
    Aug 2015
    NA - SA

    Default Benefit out of the situation

    An US company, buying goods from China, with Yuan getting devalued and $US getting stronger, asks to get cheaper prices from the supplier in China because of these devaluations. That's how I would qualify and explain the "benefit out of the situation" matter: when the situation suddenly become more favorable, and you try to take benefits from it.
    This is what happens with the example I quoted today, but there's many other ways or examples as way, such as when industry is going to rebuild a fleet, the launch of a new plane, etc, that make you think about changing the terms of your contract.
    As a buyer, do you think you'll rush to that kind of strategy? Would you try that soon to cut prices more by this way? What about the confidence between suppliers?

  2. #2
    Diamond Member Corzhens's Avatar
    Join Date
    May 2015

    Default Re: Benefit out of the situation

    This thread reminds me of a businessman I know who would shift from import to export depending on the exchange rate. At that time the peso was around 22 to a dollar. When it went up to 25 to a dollar, he shifted to exporting handicrafts to take advantage of the dollar's high value. And when the exchange rate went down to 24, he backtracked to his importation of food stuffs. But not anybody can do that. You need connections.

  3. #3
    Regular Member
    Join Date
    Dec 2016
    Nakhon Ratchasima

    Default Re: Benefit out of the situation


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