Global Managerial Economics 4IP

800 words, including a 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 risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome it.

 

Assume that 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?

Your assignment is to fill in the table. The following are instructions for completing the table:

 

• Choose an industry with which you are familiar or have an interest.
• For each risk type listed in the table, indicate with an xin the appropriate column if you are taking the perspective of an importer or exporter.
• Also make an assumption of what type of business (large, medium, or small) you will be using for each risk type by marking L, M, or S in the column.
• These factors will be used to contribute to your answer on how to overcome the risk for the industry and the business.

Risk	Importer	Exporter	L/M/S	How to Overcome It
Economic conditions
Fluctuations in industry
Competition
Technological change
Change in preferences
Costs and expenses
Regulations
Expropriation
Interest rates
Government monetary policy
Government fiscal policy
Internal and external wars
Difference in culture and religion
Ownership of factories and property
Human resource restrictions
Intellectual property
Discrimination
Red tape and corruption
Blockage of funds or capital accounts
Change in government