Harpers cannot add the lighter weight feature, though it is the most desired, as the cost of $6.75 is greater than the cost differential of $6. The best approach might be to add the extra-soft insole ($3) and the longer-wearing sole ($3).
3. Strategically, the decision to sell shoes in the United States makes very good sense. To compete effectively in a competitive global market such as shoes, a firm has to have an effective presence in all the key markets, which would include the United States. The experience of competing in the United States should bring profits (due to the higher prices) and the knowledge obtained from dealing with the different customers. This knowledge can be used to improve the firm’s competitiveness in other markets.
Note: the currency exchange rate used in the problem is based on the exchange rate of $1.6523/ £ but the actual exchange rate varies on a daily basi