Applying Economic Concepts to Improve Business Decisions
Revise your Week 3 economic analysis using the feedback provided by your facilitator to evaluate the challenges of expanding your company's production to a foreign market. This will require you to revise previously recommended pricing and non-pricing strategies for your company's product based on the selected country's economy's stage in the business cycle and the projected economic conditions. Discuss the evidence that supports your recommendations.
Select a foreign market in which to expand your chosen product.
Write a 1,750-word paper (including any material you include from your Week 3 assignment) detailing your findings. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged.
• Describe current global economic conditions and their effect on local macroeconomic indicators in your selected country. Consider forecasts for population growth, GDP growth, GDP per capita growth, export growth, and sales growth.
• Evaluate the competitors' existing production in the chosen country.
• Evaluate forecast sales in the selected country.
• Determine the type of economy that exists in your selected country - closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?
• Describe how your chosen country's current credit market conditions affect demand for your product or service and your planning or operating decision for your production in that country.
• Analyze the role of the selected country's central bank on that country's economy.
• Evaluate the availability, education, and job skills of the work force in the selected country. Discuss the additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.
• Discuss any additional supply chain challenges you anticipate if attempting to sell your product made in your chosen country to countries outside of that market.
• Discuss any comparative advantages your company will have over competitors in that country.
• Recommend either for or against expanding your company's production into your chosen country based on your research.
Cite a minimum of three peer reviewed sources not including the textbook.
Format your assignment consistent with APA guidelines.