Describe the economic risk factors for a global business decision.
Apply research to create original insights and/or solve real-world problems.
Assignment Details:
Assessing the political, legal, and economic risks inherent to doing business in another country is a critical first step in establishing a potential foreign market’s viability. Moreover, assessing market challenges and opportunities present in another country is also important as the accurate evaluation of these factors can impact business decisions and resulting outcomes. In this assignment, you will be able to apply research to recommend a course of action for a given business scenario.
Scenario: As the owner of a U.S.-based soft drink distributor, you have the opportunity to acquire a competing soft drink processing facility based in a country that you chose previously from Germany, France, Spain, Poland, Greece, Italy, Sweden, Belgium, Norway, or Portugal.
The acquisition price is below book value. After completing some marketing research, you must make a recommendation to your management team in favor of or against the acquisition. Your assessment is based on your chosen country’s political, legal, and economic climate and the market challenges and opportunities.
Write an informative essay addressing the checklist items below.
Checklist:
-Identify two political risks associated with this offer. This may include but is not limited to:
Social unrest
Regime change
Political conflict
Differences in political systems
-Describe three economic risk factors associated with this offer. This may include but is not limited to:
Management of the economy
Currency fluctuations
Differences in economic systems
-Explain two legal risks associated with this offer. This may include but is not limited to:
Lack of legal safeguards
Differences in legal systems
Conflict between common versus civil law
-Describe how the known market opportunities and challenges in this country would factor into your recommendation.
-Summarize your final acquisition decision to your management team.
-Utilize at least three external sources as part of your research. Sources might include this unit’s reading resources, your textbook, a website previously recommended, or any other academically credible resource found in the university library. Only sources cited within the body of the paper should be included in the reference list.
*This is an expository essay assignment. Please don’t use any tables.
*This assignment will be submitted to Turnitin.
*Please refrain from using AI.