Describe the economic risk factors for a global business decision.
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 have the opportunity to apply research to recommend a course of action for a given business scenario.
Scenario: As the owner of a U.S. based coffee distributor, you have the opportunity to acquire a competing coffee processing facility based in another country (use the country you chose for your Unit 3 and 5 Journals). 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 the political, legal, and economic climate as well as the market challenges and opportunities present in your chosen country.
For this assignment, use your research from your Unit 3 and 5 Journals to develop an informative essay addressing the checklist items below.
Assignment Checklist:
Identify two political risks associated with this offer.
Specify two economic risks associated with this offer.
Explain two legal risks associated with this offer.
Describe how the known market opportunities and challenges in this country would factor into your recommendation.
Summarize your final acquisition recommendation to your management team.
Utilize at least three external sources as part of your research. Sources might include your textbook, a website recommended in a past journal, discussion, or assignment, 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.
