Description
There are 2 parts to this question Part 1 has 2 sections and Part 2 is one. Please read all requirements
Part 1 (Macro and Microeconomic Concepts in a Global Context) - write 400–600 words
Part A
You are a business owner firm that manufactures a specialized product in the United States. While developing a 5-year strategic growth plan, you have decided to investigate the benefits and disadvantages of expanding internationally. Research the issue, and discuss the following:
- How would international expansion affect your business?
- What are the risks, advantages, and disadvantages to your business of international expansion?
- Do you think it is worth it?
Part B
- If you were the owner of an automobile company and decided to market internationally, would you face imperfect, monopolistic, oligopolistic, or perfect competition? Please justify your answer.
- What sort of circumstances would you have to be aware of, and why?
- What if you were a major retailer in the United States?
Part 2 - (Costs) - 800 - 1000 words
Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper. Chapter 5 of the Suranovic text is a good reference for this task. (https://saylordotorg.github.io/text_international-...)
Complete the following:
- What would be the production possibility frontiers for Brazil and the United States?
- Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
- Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
- Denote these points on each COUNTRY’s production possibility frontier.
- Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?
To assist in your thinking and discussion, additional questions to consider include:
- What is the labor-intensive good?
- What is the Marginal Rate of Transformation impact?
- What is the labor-abundant country?
- What is the capital-abundant country?
- Could trade help reduce poverty in Brazil and other developing countries?
Explanation & Answer
3 hours
Attached.
Running Head: GLOBAL ECONOMICS
1
Global Economics
Name
Course
Tutor
Date
GLOBAL ECONOMICS
2
PART ONE
Part A
Expanding a business globally could be all the more exorbitant to if there are
higher charges and furthermore expenses to begin a business. One would lose more than the
benefit and growing to a nation where this would be the circumstance for the business wouldn't
make it worth. A U.S. business that extends abroad can profit back home from expanded social
affectability, aggressive insight, new open doors and better administration hones. I'd envision
this would be leeway for the U.S if an entrepreneur could effectively break the way of life
obstruction and grow globally. This experience would take shoppers' business back to the U.S.
Likewise; extraordinary nations are at various phases of their financial improvement.
Consequently, markets that are additional focused and develop in the U.S. may at present be
developing, or don't yet even exist, in different nations. This offers firms a chance to wind up
distinctly less subject to their residential financial circumstance.
In the event that you grow your business universally it is conceivable to have the
advantage of owning the principal business of your kind in that specific nation. This could be
one favorable position. This impediment could be that despite the fact that your business is the
first there of its kind it may not be an exceptionally well known sort of business. You'd need to
do investigate about the nation and the general population's way of life keeping in mind the end
goal to maintain a strategic distance from that potential hazard. At that point, there can be money
related dangers also. There is the conceivable favorable position of opening up a business in
another nation where a few charges are nonexistent or basically lower than here in the U.S. Still,
there can likewise be the detriment ...
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