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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

COURSE MANUL: Title: International Economics
  Edition: 11
  Author: Salvatore
  Publisher: Wiley
  ISBN: 9781118546048
  Course: ECON310

 

Key Assignment Draft

 

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?

 

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

 

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

 

 

 

 

 

 

 

 

 

 

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.  

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