Value in the community
Task Name: Phase 4
Deliverable Length: A completed table + 850 – 1,000 word summary
Due Date: 3 May 15
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 |
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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 |
Resources:
http://www.federalreserve.gov/monetarypolicy/default.htm
http://www.internationaleconomics.net/
https://www.whitehouse.gov/omb/inforeg_infopoltech