Analysis Of Hedging Effect Of Product Quality Improvement Strategy For Export Manufacturers To Cope With Tariff Fluctuation

In the context of supply chain globalization,compared with exporting countries,importing countries sets higher trade rules to protect their own interests,which leads to a series of trade frictions.Furthermore,cross-border supply chain member enterprises are inevitably affected by tariff fluctuations,such as increased operating costs and operational risks.In view of this,based on the background of cross-border supply chain,explore the balance among tariffs and the sales price,wholesale price,market demand,member enterprises to evade degree,cost.The influence of tariff fluctuation on the optimal decision of cross-border supply chain and the risk transmission mechanism are analyzed.In addition,a large number of studies show that the essence of trade friction is technological competition.In order to cope with trade friction,export countries have formulated policies on the transformation and upgrading of export products,which can effectively improve the quality of export products and help ease trade friction.Based on this,this paper focuses on the hedging effect of the strategy of "product quality improvement" on tariff fluctuations,and discusses the optimal strategic behavior of product quality improvement among the member enterprises of the cross-border supply chain,which is of great practical significance for the enterprises of the cross-border supply chain to deal with tariff risks.In a cross-border supply chain system composed of export manufacturers and foreign retailers,this paper introduces the factor of tariff fluctuation,and studies the influence of tariff fluctuation on cross-border supply chain enterprises under the circumstance that different leading enterprises in the cross-border supply chain bear the tariff cost.On this basis,export manufacturer adopts the risk response strategy of "product quality improvement",construct a dynamic game model between export manufacturer and foreign retailer,and discuss how cross-border supply chain member enterprises make optimal decisions such as wholesale price,product quality improvement and sales price.By comparing with the optimal decision when no management strategy is adopted,the hedging effect of improving product quality incross-border supply chain in the face of tariff fluctuation is analyzed.In addition,when foreign retailer bears the tariff cost,effective incentive mechanism is designed to encourage export manufacturers to improve the enthusiasm of product quality,so as to make the cross-border supply chain member enterprises obtain higher profits.Finally,the validity of the conclusion is verified by numerical simulation.The research shows that: no matter what the tariff risk is,the tariff fluctuation has a negative impact on the operation of cross-border supply chain enterprises.When faced with the cost of tariffs,risk-averse export manufacturer raises wholesale prices to compensate.However,when foreign retailer takes the leading position and bears the risk of tariffs,its bargaining power is strengthened,at this time,export manufacturer needs to reduce wholesale prices in order to maintain good cooperation with foreign retailer."Improving product quality" adopted by export manufacturer can improve the wholesale price,market demand/order quantity of cross-border supply chain and the benefits of cross-border supply chain member enterprises,which is conducive to improving the operation efficiency of cross-border supply chain.The optimal product quality improvement level of export manufacturer is inversely proportional to the degree of tariff fluctuation and the risk aversion coefficient of members.Under the circumstance that foreign retailer bears the tariff cost,the incentive coefficient of the incentive mechanism set up by foreign retailer should reach a certain degree to achieve the purpose of promoting export manufacturers to improve the product quality.Finally,the paper puts forward the corresponding management countermeasures for export manufacturers and foreign retailers under the fluctuation of tariff.