Global Managerial Economics Essay

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Deliverable length = 800–1,000 words, including a completed table

As an owner of a visible business that is valued in the community, you are making a final decision regarding the international aspects of a business decision, and you 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. Two main considerations are central to the decision:

  • 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 and then provide a brief summary of your decision, highlighting the two above considerations. 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 X in the appropriate column whether the risk will affect them as an importer or an 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.
  • Using these factors, provide a brief 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

 
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