A set of recommendations: Expanding production

Anonymous
timer Asked: Mar 7th, 2019
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Question Description

Assignment Three and Four Due Thursday, March 7

Use the following information to create a set of recommendations.

You are on the upper management team of a large USA based company the sells integrated circuits and gas turbines.The company plans to expand production to minimize transportation cost.The CFO has made it clear that the exchange rates of return profits are a risk that management needs to consider.Before the CFO signs off on the deal, the risk must be explained using data. A consulting economist has given the management team tools to help management make their recommendation to the CEO.

https://data.worldbank.org/indicator/BN.CAB.XOKA.CD?view=chart

https://atlas.media.mit.edu/en/

https://x-rates.com/

Your recommendation to the CEO and CFO must include the following:

  • At least three countries for each product
  • The justification for each country (simply saying 1, 2, three markets will not work)
  • Explanation of predicted risk to exchange rates for each country
    • Hint Balance of payments
  • Overall recommendation to the CEO (i.e., the best location)

Part 2

How does your recommendation change if the location must serve both productions.

Tutor Answer

Msharon
School: University of Maryland

Attached.

Running head: PRODUCTION EXPANSION RECOMMEDATIONS
1

Recommendations
Name
Professor
Date
Course

RECOMMENDATIONS

2

When the company is expanding its operations in a foreign country, it should consider
factors that influence the organization’s financial transactions. It is vital to consider factors such
as the balance of payment, foreign exchange rate, and economic complexity of the countries that
the company wants to expand its operations. The current account of the balance of payment is
crucial as it indicated the country’s position in regards to international trade that is it suggests if
the country is the net exporter or importer (Amadeo, 2018). Exchange rate allows for the
calculation of financial returns by comparing the country’s exchange rate with the international
rate of exchange that is the U.S dollars. The economy complexity data indicates how well the
country is performing regarding in...

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Anonymous
Thanks, good work

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