International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Chapter 3, Problem 2CTD
Summary Introduction
To evaluate: The benefits, cost and risk in doing business in nations like C, R or G and determine which country is most attractive for foreign direct investemnt and provide justification for selection.
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You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company’s long-term strategic goals. As such, management has requested a report regarding the attractiveness of alternative countries based on the potential return of FDI.
Write your report to discuss how you would measure country attractive and eventually making a investment choice in a particular country.
Suppose you are a manager (or owner) of a small firm which cultivates agricultural product (crops), and sell (export) in the international market (foreign country). You need to follow or consider four risk factors (currency, country, cross-culture, and commercial) in this business.
1. How do you consider these four factors? and
2. what factor is most considerable for your agricultural business in the international arena?
There are many Modes of entry for international Business. Discuss the advantage and disadvantages of each of these. if you are small food and beverages company and plan to enter a country with high business risks, which mode of entry would you reccomend?
Chapter 3 Solutions
International Business: Competing in the Global Marketplace
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- Your company is considering exporting its products to Egypt. Yet, management’s current knowledge of this country’s trade policies and barriers is limited. Before your company’s management decides to export, a more detailed analysis of the political and economic conditions in Egypt is required. Prepare an executive summary of your analysis and findings of the factors you would look at? What is the basis of Country’s comparative advantage and absolute advantage in the production of goods and services?arrow_forwardAs a national of CARICOM, and a student of International Business Management, you have been invited to make a presentation on Foreign Direct Investments to an Investment team. Thoroughly explain the below issue a) The implications of Foreign Direct Investments inflows for developing countries.arrow_forwardUsing appropriate academic resources, assess the impact of a country's economic, demographic, and political/legal environment on business. You should select a country that you are at least somewhat familiar with. I have listed some ideas to give you a starting point on your research. You should include this information but are not limited to only this information. After you find the information on each of these three sections, write a paragraph analyzing how this impacts business in the country. Your assignment should be at least 2 pages long and you should use APA format to cite your sources. Economic Environment Economic growth data Employment data Inflation data Income distribution Interest rates Political and Legal Environmentarrow_forward
- Following your analysis of your company situation, you had the idea and the ambition to export your services to foreign markets. However, you are not sure how to proceed in order to make your export project a reality. You want the advice of experts in the field. Where could you find these advisers or, in other words, which institutions offer export support in Canada? course: Export of services write 6 lines onlyarrow_forwardWhat factors should be considered as feasible by a company planning to expand either Canada, Jamaica or Haiti?arrow_forwardIf your firm is considering investing in Russia, however, after learning that BP's investment is suffering from Ukraine-related sanctions, identify at least 2 reasons why you may want to invest in Russia anyway.arrow_forward
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