Global Managerial Economics
Part I
Deliverable Length: 500–750 words plus completed table
As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the possible risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome the risks.
Assume your business is visible and an important member of the community. Would the government encourage a decision to expand? How would it affect the reputation of the business?
Here is what the list looks like. Your assignment is to fill in the table.
|
Risk |
Importer |
Exporter |
L/M/S |
How to Overcome It |
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Economic conditions |
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Fluctuations in industry |
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Competition |
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Technological change |
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Change in preferences |
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Costs and expenses |
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Regulations |
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Expropriation |
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Interest rates |
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Government monetary policy |
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Government fiscal policy |
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Internal and external wars |
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Difference in culture and religion |
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Ownership of factories and property |
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Human resource restrictions |
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Intellectual property |
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Discrimination |
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Red tape and corruption |
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Blockage of funds or capital accounts |
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Change in government |
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Comment on whether the U.S. government would support a business owner’s decision to expand internationally or import in light of the balance of payments and how the move internationally may affect the business’s reputation as a local small-business owner.
