Assignment:
Part 1
• 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.
Part 2
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?
Your assignment is to fill in the table. The following are instructions for completing the table:
• Choose an industry with which you are familiar or have an interest (OLIVE OIL).
• For each risk type listed in the table, indicate with an x in the appropriate column if you are taking the perspective of an importer or exporter.
• Also make an assumption of what type of business (large, medium, or small) you will be using for each risk type by marking L, M, or S in the column.
• These factors will be used to contribute to your answer on how to overcome the risk for the industry and the business.