Global Economic Risk

MT220M3-3: Describe the economic risk factors for a global business decision.

GEL-6.06: Apply research to create original insights and/or solve real-world problems.

In the Module 3 Assessment, you will read a scenario and then apply research to recommend a course of action to address a business scenario. Assessing the political, legal, and economic risks inherent to doing business in another country is a critical first step in establishing a potential foreign market’s viability. Moreover, assessing market challenges and opportunities in another country is also important, as accurately evaluating these factors can impact business decisions and resulting outcomes.

Scenario: As the owner of a U.S.-based soft drink distributor, you have the opportunity to acquire a competing soft drink processing facility in another country (select from the choices provided). The acquisition price is below book value. After completing some marketing research (see the Learning Resources area), you must make a recommendation to your management team in favor of or against the acquisition.

Your assessment is based on the political, legal, and economic climate and the market challenges and opportunities in one of the following countries: Germany, France, Spain, Poland, Greece, Italy, Sweden, Belgium, Norway, or Portugal.

Write an informative essay addressing the checklist items below.

Checklist:

• Identify two political risks associated with this offer. This may include but is not limited to:
• Social unrest
• Regime change
• Political conflict
• Differences in political systems
• Describe three economic risk factors associated with this offer. This may include but is not limited to:
• Management of the economy
• Currency fluctuations
• Differences in economic systems
• Explain two legal risks associated with this offer. This may include but is not limited to:
• Lack of legal safeguards
• Differences in legal systems
• Conflict between common versus civil law
• Describe how the selected country’s known market opportunities and challenges would factor into your recommendation. Summarize your final acquisition recommendation to your management team.
• Utilize at least three external sources as part of your research. Sources might include the provided learning resources, your textbook, or any other academically credible resource found in the university library. Only sources cited within the body of the paper should be included in the reference list.
• Your should be a minimum of 500 words and include a title page, introduction, main body, conclusion, and APA-formatted reference list. For assistance writing a paper or formatting a reference list in APA format, please see the “Academic Writer” link under “Academic Tools.”
• Proper notification of any resubmission, repurposing, or reworking of prior work per the .
• This assessment should be a Microsoft Word (minimum 500 words) document and include a title page, introduction, main body, conclusion, and APA-formatted reference list.
• Respond to the questions thoroughly, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your submission should be highly organized, logical, and focused.
• Your submission should provide a clearly established and sustained viewpoint and purpose.
• Your writing should be well-ordered, logical, unified, original, and insightful.
• Your submission must be written in Standard English and demonstrate exceptional content, organization, style, grammar, and mechanics.
• A separate page at the end of your submission should contain a list of references in APA format. Use your textbook, the Library, and the internet for research.
• Be sure to include references for all sources and to cite them using in-text citations where appropriate. Your sources and content should follow current APA citation style. Review the writing resources for APA formatting and citation found in Academic Tools. Additional writing resources can be found within the Academic Success Center.
• Your submission should:
• include a title page;
• be double-spaced;
• be typed in Times New Roman, 12-point font, and
• be free of spelling or punctuation errors.