Global Econ

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.

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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?

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.

FOR DR. MAKAYLA

Pricing and Exchange Rates

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.

Part Ia

800+ words plus completed table

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.  

Decision-Making in a Global Economy

In a recent State of the Union Address, the President of the United States announced the formation of the “National Export Initiative,” an important endeavor that is necessary for long-term, sustainable economic growth for the country. The president’s goal is to double exports within 5 years, which, it is hoped, should reduce unemployment by adding 2 million jobs.

This is the first time in history that the United States has put a real focus on government-wide export promotion.

Since then, the president has signed an Executive Order that formed the “Export Promotion Cabinet” within the presidential administration. The Department of Commerce is an important player in this initiative and is charged with making sure that U.S. businesses can actively participate in international markets by increasing their exports of goods, services, and agricultural products.

Part 1b

If you were a member of the Cabinet, what would you do to achieve these goals?

Address the following in
1,000+ words
:

1. Increase exports of small and medium-sized businesses.

a. What kind of programs should be put in place to improve information?

b. What kind of technical assistance should be given to first-time exporters?

i. What kinds of education do first time-exporters need to do business overseas?

c. How can the government assist these exporters with new opportunities in international markets?

2. What other kinds of assistance can the government give?

3. Where should the trade missions go, and why?

4. How can consumers help?

5. What will this mean for business costs?

6. How can the banks help?

a. What does the Export-Import Bank do?

7. What macroeconomic policies would be helpful?

a. Should the Fed involve itself more in the foreign exchange rate?

b. Should interest rates remain low?

8. How do you reduce barriers to trade? What issues do you think will come up in new markets, with old trade barriers and enforcement of current trade agreements?

9. How does the also increase services trade?

10. How does all this achieve the president’s objective of reducing unemployment and increasing GDP?

11. Are there any risks to businesses with this new policy?

12. Are there any risks to U.S. fiscal, monetary, or trade policies?

Part II

500+words

Part of a business strategy you are considering involves the reduction of labor and material costs. Your CFO suggested doing some of the manufacturing overseas. The concern in moving some of your manufacturing offshore may be that you achieve lower costs of production but lose quality control (a trademark of your brand) and perhaps even reduce morale in your company by laying-off those workers whose jobs were being performed overseas. These are serious issues. You asked your CFO to outline the benefits and disadvantages of doing so in regards to your relationship with your employees, balance sheet, quality, and service. 

Explain 3 additional benefits and 3 additional disadvantages that would concern you and the economy and answer the following questions:

· What would you conclude?

· Is there something else you can do with those employees that you would be laying off?

Part III

500+words

In your quest to understand how your employees would be affected by any of the decisions you are going to make, you also realize that your labor costs may not be the real source of your balance sheet problems. After all, you are manufacturing in a region that attracts many immigrants, which, because of an increase in the labor pool, actually keeps your labor costs relatively low. This sparked the question about why Americans continue to be concerned about immigration policy and what the debate is about. You want to know more.

Explain the following:

· What effect does immigration have on wages?

· Does immigration help or hurt a country’s output?

· What are the advantages of immigration?

· What are the disadvantages of immigration?

· What are some of the current political and economic issues regarding immigration?

· What is the debate surrounding the Dream Act about?