Description
Assignment: International Economic Analysis (2000 words)
Every nation interacts with other nations. Sometimes that interaction is structured through various trade agreements. Other times it is more casual but there are no nations that are totally closed off from the Global Economy. Those interactions may have an impact on the success or failure of any new marketing strategy. Consider some of the following as you analyze the nation’s place in the Global Economy:
- What international trade agreements is this country part of?
- What is the country’s relationship to the WTO?
- Who are the country’s major trading partners?
- What does the country export?
- What does the country import?
- What trade barriers are in place in this country?
- How strong (weak) is the nation’s currency?
- How will global problems such as the slowdown in China’s growth or the falling price of oil impact this nation?
Here is what we want you to do with this assignment.
Dig deeper into the international data for example the WTO databases of trade barriers or the USTR report on trade barriers by country to get a sense of the trade barriers.
Look at their exchange rates to see if there is any exchange rate risk
What kind of trade agreements do we have with that country?
Who are the commercial officer contacts for that country at the US Embassy in that country?
What is the US Commercial guide for the country saying about potential in that country?
What are Foreign Direct Investment trends in that country and is it easy to move investments in and out of that country.
Suggested Resources:
- http://wits.worldbank.org/Default.aspx?lang=en integrated trade data on countries
- http://www.state.gov/e/eb/rls/rpts/ccg/
- https://www.wto.org/english/res_e/statis_e/itip_e.htm (wto antidumping etc for goods and services)
- http://tmdb.wto.org/searchmeasures.aspx?lang=en-US (trade data)
- Trade barriers latest report https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
- http://www.heritage.org/index/ranking
- http://www.doingbusiness.org/EconomyRankings/
- https://www.cia.gov/library/publications/the-world-factbook/index.html
- http://www.worldbank.org/
- http://www.imf.org/external/index.htm
Explanation & Answer
Attached.
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Running Head: KENYA’S PLACE IN THE INTERNATIONAL ECONOMY
Kenya’s Place in the International Economy
Student’s Name
Institution
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KENYA’S PLACE IN THE INTERNATIONAL ECONOMY
Kenya’s Place in the International Economy
Kenya is an East African nation with a population approximated at 46.1 million, which
still rises by an approximated one million in a year. With the assistance of the World Bank
Group, the International Monetary Fund (IMF) plus other advanced partners, Kenya has
managed to make significant economic and structural improvements that have led to the constant
economic development in the past years. However, the development challenges consist of
poverty, climate change, inequity, and the economy susceptibility to external and internal shocks.
The Kenyan Shilling refers to the exchange rate of this country. Her currency ranks
reveal that the greatest prevalent Kenya Shilling exchange rate involves, the KES into USD
currency. In economics, an exchange rate taking place between two coins the rate whereby one
currency exchanges for another. It is too considered as the worth of one nation's exchange
currency in relations with a new currency. However, there are few kinds of exchange rate risk
experienced by Multinational Corporations in Kenya (Kidwell 2008). These involve the
translation, economic and the transaction exchange risk. Transaction risk is simply latent for loss
or gains in contracted for close term cash flows led to an external exchange rate persuaded
modification in the worth of amounts as a result of the multinational corporations or extents that
the global firms owe to all other parties.
Economic risk on the hand refers to the future sufficient cash flows concerning the
corporation that are visible to budding currency exchange rate alterations. Currency mismatches
that build operating risk exposed less and sometimes very hard to recognize. Two mismatches,
together or individually, create operating risk. The first misalliance involving the currency of
transaction and the production currency whereby the price of goods, administrative or selling
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KENYA’S PLACE IN THE INTERNATIONAL ECONOMY
expenditures are denominated the profit margin. The second misalliance between an
inventiveness’s production currency and the production currency of a second inventiveness
competing in the similar market affects the company's trades performance as ell as market share.
In fact, fluctuations in exchange rates might affect the clearing of cash flows, contacts and the
firm assessment as restrained by share charges and therefore vital for financial directors to know
the company’s foreign currency experience and appropriately manage such exposure( Eun and
Resnick, 2009). By doing that, executives can stabilize the corporation’s cash flows and boost
the firm’s importance.
Kenya is an international trader.It as well has The U.S. Embassy which began in 1964.
Sixteen Ambassadors from that time, the Embassy has improved the relations between the
Kenyan and American...
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