With the current U.S. economy in a weakened state, many companies are reluctant to implement any capital improvements or capital expenditures in fear of the economic uncertainty that exists that may negatively impact the cashflow of the organization. Assess the impact of this behavior on productivity, cost efficiency, diversification of assets, or impact to future cashflows that may emerge if companies continue this mindset indicating the long-term risk to profitability. Provide an example or scenario to support your response.
Analyze the challenges that companies face in entering global markets. Identify the potential impact to capital budgets in making the decision to move into a global market.