PHASE 4 – Pricing and Exchange Rates PHASE 4 DISCUSSION BOARD – Deliverable Length: approximated 450 words DUE DATE: agreed to deliver tomorrow morning May 1st Instructor Comments: “You have to paste your own Key Assignment Outlined from your Phase 4 Individual Project (not your assignment but a summary of your Individual Project). It is necessary for you to familiarize with the requirements for Individual Project 4. PHASE 4 INDIVIDUAL PROJECT – Deliverable Length: 800 – 1,000 words, in additional to the completed table. DUE DATE: Tomorrow or Thursday. Key Assignment Draft As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome it. Assume that your business is visible and an important member of the community. Would the government encourage a decision to expand? How would it affect the reputation of the business? Here is what the list looks like. Your assignment is to fill in the table. -→ (Also available in excel attachment) Risk Economic conditions Fluctuations in industry Competition Technological change Change in preferences Costs and expenses Regulations Expropriation Interest rates Government monetary policy Government fiscal policy Internal and external wars Difference in culture and religion Ownership of factories and property Human resource restrictions Importer Exporter L/M/S How to Overcome It Intellectual property Discrimination Red tape and corruption Blockage of funds or capital accounts Change in government Comment on whether the U.S. government would support a business owner's decision to expand internationally or import in light of the balance of payments and how the move internationally may affect the business's reputation as a local small-business owner. Instructor Comments (TABLE) L/M/S is an assessment of the risk. L= Low; M= Moderate; S=Severe. You need to identify the risks that affect your particular example, and make an assessment of their degree using these codes. Instructor Comments for Phase 4 Individual Project “the writing part”: “Individual Project - Phase 4 you have to think as a business owner, who is considering doing business with other countries (export or import). You are just going to focus on risks. There are risks to being an importer and risks to being an exporter. The point is that although there are risks, it does not mean that they cannot be managed. They just have to be weighed, and plans must be made to hedge against them. The students need to identify and describe the risks and then list whether they will affect them as importer or exporter. Then, the risks need to be weighed and evaluated. If most of the risk can be managed and the probability of the others is small, business owners may get more comfortable with the decision process, and they can proceed to the next step. In terms of the weight, L means low risk, M means moderate risk, and S means serious or severe risk. The other point of this exercise is to discuss the balance of payments and how governments are happy to see exports increase in light of a negative balance of payments and vice-versa. The balance of payments should be explained and how companies can help stabilize it by exporting more. Finally, there are reputation issues to deal with when thinking of going into the global arena, especially if a business owner is thinking of outsourcing some of its work overseas. Remember that outsourcing is nothing else than importing services. The question to answer is how a business owner can maintain the reputation of his or her company. Here, the students are expected to focus on the benefits of globalization to businesses on a macro and micro level. The best way to approach these questions is by assuming you have a specific business within a given industry. PHASE 4 – Pricing and Exchange Rates PHASE 4 DISCUSSION BOARD – Deliverable Length: approximated 450 words DUE DATE: agreed to deliver tomorrow morning May 1st Instructor Comments: “You have to paste your own Key Assignment Outlined from your Phase 4 Individual Project (not your assignment but a summary of your Individual Project). It is necessary for you to familiarize with the requirements for Individual Project 4. PHASE 4 INDIVIDUAL PROJECT – Deliverable Length: 800 – 1,000 words, in additional to the completed table. DUE DATE: Tomorrow or Thursday. Key Assignment Draft As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee. You also need to put a plan in place to overcome it. Assume that your business is visible and an important member of the community. Would the government encourage a decision to expand? How would it affect the reputation of the business? Here is what the list looks like. Your assignment is to fill in the table. -→ (Also available in excel attachment) Risk Economic conditions Fluctuations in industry Competition Technological change Change in preferences Costs and expenses Regulations Expropriation Interest rates Government monetary policy Government fiscal policy Internal and external wars Difference in culture and religion Ownership of factories and property Human resource restrictions Importer Exporter L/M/S How to Overcome It Intellectual property Discrimination Red tape and corruption Blockage of funds or capital accounts Change in government Comment on whether the U.S. government would support a business owner's decision to expand internationally or import in light of the balance of payments and how the move internationally may affect the business's reputation as a local small-business owner. Instructor Comments (TABLE) L/M/S is an assessment of the risk. L= Low; M= Moderate; S=Severe. You need to identify the risks that affect your particular example, and make an assessment of their degree using these codes. Instructor Comments for Phase 4 Individual Project “the writing part”: “Individual Project - Phase 4 you have to think as a business owner, who is considering doing business with other countries (export or import). You are just going to focus on risks. There are risks to being an importer and risks to being an exporter. The point is that although there are risks, it does not mean that they cannot be managed. They just have to be weighed, and plans must be made to hedge against them. The students need to identify and describe the risks and then list whether they will affect them as importer or exporter. Then, the risks need to be weighed and evaluated. If most of the risk can be managed and the probability of the others is small, business owners may get more comfortable with the decision process, and they can proceed to the next step. In terms of the weight, L means low risk, M means moderate risk, and S means serious or severe risk. The other point of this exercise is to discuss the balance of payments and how governments are happy to see exports increase in light of a negative balance of payments and vice-versa. The balance of payments should be explained and how companies can help stabilize it by exporting more. Finally, there are reputation issues to deal with when thinking of going into the global arena, especially if a business owner is thinking of outsourcing some of its work overseas. Remember that outsourcing is nothing else than importing services. The question to answer is how a business owner can maintain the reputation of his or her company. Here, the students are expected to focus on the benefits of globalization to businesses on a macro and micro level. The best way to approach these questions is by assuming you have a specific business within a given industry. Risk Economic conditions Fluctuations in industry Competition Technological change Change in preferences Costs and expenses Regulations Expropriation Interest rates Government monetary policy Government fiscal policy Internal and external wars Difference in culture and religion Ownership of factories and property Human resource restrictions Intellectual property Discrimination Red tape and corruption Blockage of funds or capital accounts Change in government Importer Exporter L/M/S How to Overcome It
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