ECO/561 Week 6 Assignment Rubric Individual Assignment: Challenges of Expansion to a Foreign LocationPurpose of Assignment This week students will review and revise their Week 3 Research Analysis for Business assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company's production to a foreign market. Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Grading Guide Content Met Partially Met Not Met Comments: Evaluated current global economic conditions and their effects on macroeconomic indicators in your selected country. Provided forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.14 points Evaluated any competitors' existing production in the chosen country. 11 points Assessed sales forecasts in the selected country. 11 points Categorized the type of economy that exists in your selected country as closed, mixed, or market. Explained the difference between these types of economies and how might this affect your expansion. 11 points Assessed how the chosen country's current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country. 11 points Analyzed the role of the selected country's central bank on that country's economy. 11 points Compared the availability, education, and job skills of the work force in the selected country. Discussed any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks. 11 points Explained any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries. 11 points Conclusion: Created business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations. 4 points Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented. 4 points Proposed how the firm's position within the market and among its competitors will allow it to take your recommended action. 4 points Recommended strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government. 4 points Recommended any comparative adv ...

1. ECO/561 Week 6 Assignment Rubric
Individual Assignment: Challenges of Expansion to a Foreign
LocationPurpose of Assignment
This week students will review and revise their Week 3
Research Analysis for Business assignment based on economic
analysis and the feedback provided by their facilitator. Students
will also expand their Week 3 analyses to evaluate the
challenges of expanding their chosen company's production to a
foreign market.
Tutorial help on Excel® and Word functions can be found on
the Microsoft® Office website. There are also additional
tutorials via the web offering support for Office products.
Grading Guide
Content
Met
Partially Met
Not Met
Comments:
Evaluated current global economic conditions and their effects
on macroeconomic indicators in your selected country. Provided
forecasts for population growth, gross domestic product (GDP)
growth, GDP per capita growth, export growth, and sales
growth.14 points
Evaluated any competitors' existing production in the chosen
country. 11 points

2. Assessed sales forecasts in the selected country. 11 points
Categorized the type of economy that exists in your selected
country as closed, mixed, or market. Explained the difference
between these types of economies and how might this affect
your expansion. 11 points
Assessed how the chosen country's current credit market
conditions, especially interest rates and the availability of
financing, affect demand for your product or service and your
planning or operating decision for your production in that
country. 11 points
Analyzed the role of the selected country's central bank on that
country's economy. 11 points
Compared the availability, education, and job skills of the work
force in the selected country. Discussed any additional
challenges of international production, such as political
stability, availability of government financing or other
incentives, threat of capital controls, and exchange rate risks.

3. 11 points
Explained any additional supply chain challenges you anticipate
if attempting to make your product in your chosen country and
selling the product in other countries. 11 points
Conclusion:
Created business strategies, including price and non-price
strategies, based on your market structure to ensure the market
share and potential market expansions and explore global
opportunities for your business in a dynamic business
environment and provide recommendations. 4 points
Develop a recommendation for how the firm can manage its
future production by synthesizing the macroeconomic and
microeconomic data presented. 4 points
Proposed how the firm's position within the market and among
its competitors will allow it to take your recommended action. 4
points

4. Recommended strategies for the firm to sustain its success
going forward by evaluating the findings from demand trends,
price elasticity, current stage of the business cycle, and
government. 4 points
Recommended any comparative advantages your company will
have over competitors currently operating in that country, and
defended your position, either for or against, expanding your
company's production into your chosen country based on your
research.
4 points
The analysis is a minimum of 2800 words in length. 4 points
Total Available
Total Earned
115
/115
Writing Guidelines
Met
Partially Met

5. Not Met
Comments:
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting
guidelines and meets course-level requirements. 10 points
Intellectual property is recognized with in-text citations and a
reference page. 10 points
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper. 5 points
Sentences are complete, clear, and concise.
5 points
Rules of grammar and usage are followed including spelling and
punctuation. 5 points
Total Available

6. Total Earned
35
/35
Assignment Total
#
120
/150
Additional comments:
Corporate Finance 11th edition
Stephen Ross; Randolph Westerfield; Jeffrey Jaffe; Bradford
Jordan
Ch 15, 20, 26 AND 28
Respond to the following in a minimum of 175 words:
Discussion 1
Venture capital financing is a type of funding which assembles
cash from investors and lends it to startup businesses that have
high potential for success. Venture capital investments usually
encompass very high risk; however, the reward has the potential
to exceed the risk. The process for acquiring venture capital
financing sometimes is complicated, but generally there are five
stages in the process of procuring venture capital financing.

7. Respond to the following in a minimum of 175 words:
· Discuss the five main stages in the process of venture capital
financing.
Reply to at least 2 of your classmates. Be constructive and
professional in your responses.
#2 will add later
#3 will add later
Research Analysis
A publicly traded company can be defined as a company which
has at least one listed public stock exchange. The company also
issued the company ownership securities to investors in the
public. Through initial public offering the company becomes
public once approved by the regulator of the security exchange
market (Budiharjo, 2018). Google is one of the publicly traded
companies in the US. Google is a US based company which
organizes information from the world and makes it centrally
located for accesses and use by various users.
The market structure for Google is oligopoly. This is because
Google competes with other competitors such as the mobile
operating systems in the market place. Google has the largest
market share of 90 %. The market is dominated by a few number
of companies who dominate the industry. Google has earned a
massive market share through offering products that are
differentiated at a fair price. In the industry, Google competes
with various search competitors such as Amazon, Yahoo, AOL,
and Microsoft’s Bing
As it is in every market, the market in which Google operates
has its own share of barriers, which prevent new companies
from entering the market. One of the barriers is the competitive
response in the market. The market has giants and well

8. established companies such as Google and Yahoo who are
aggressive and the main territorial players. The companies
aggressively compete to prevent the newcomers from gaining
the market share (McDonnell, 2018). The competitive responses
discourage the newcomers and also provide an environment that
is not favoring them.
The cost of operation and the startup cost in the industry are
ideally high. This is because the market requires high
investment on modern technology as well as expertise. The
search engines also need to be comprehensive, fresh and of high
scale to avoid copying. This requires a tremendous amount of
capital to start and also maintain thus acting as a barrier to new
entrants. The fixed cost is also high making it rigid to compete
with the large companies. Economies of scale are another
barrier to entry of this market .This is because the existing
firms have already exploited the scales, thus discouraging the
incumbents (Mohr, 2019). Other barriers to entry of the market
includes pricing, rules and regulations, along with technological
advancement
Government policy is also a major barrier in this market. The
policies of the government limit and also prevent competition
from new firms. This is achieved through licensing and product
testing regulations. New companies that fail to meet the
requirements of the government opt to withdraw from the
market and buy into to another market with few regulations.
Access to the major distribution channel is another barrier in
this market. This is because the already established competitors
have much control of the logical distribution channels due to
the relationship which is long standing. Hence persuading the
channels of distribution to accept the new products will require
the new entrants to offer some incentives such as promotions,
discounts or cooperative advertising. This increases the
expenditures thus reducing the profitability of the incumbent
firms

9. Generally the barrier to entry in this market includes the high
startup cost, economies of scale for the existing firms,
competition and also a high degree of control by the existing
firms on raw materials. This barrier limits competition
(Nurboja, 2017). This may reduce the level of creativity and
also innovativeness in the market as the company will already
have dominated the market hence no threats.
There are various macroeconomic indicators that show the
performance of a company. This factors either results in the fall
of a market or the rise of a given market. One of the factors is
the stage of the business cycle. Google is in the growth stage.
This is the expansion phase, which is characterized by increase
in profits, increase in the demand of the products, increased
sales, increased output and high level of employment. At this
stage the prices of the factors of production increases with
increase in output (Nurboja, 2017). The stage is characterized
by a lot of innovations and advancement of the products.
Gross domestic products explain the rate of growth of the
economy. In 2017 the GDP of US increased by 2.3%, 2.9 % in
2018 and 3.1% in 2019.This confirmed the US as the largest
economy. The inflation rate in US has dropped from 2.1% in
2017 to 1.9% in 2018 and the 1.5% in 2019 as shown in the
table below (Vermaat, Sebok, Freund, Campbell, & Frydenberg,
2017).The rate of inflation affects the quantity of goods and
services that a company produces as well as the quantity those
customers can purchase. The reduction in inflation rate has
reduced the cost of doing business in the US and thus Google
can earn more profit out of the favorable environment. :
Year
Inflation Rate
2016
1.26%
2017
2.13%
2018
1.9%

10. 2019
1.5 %*
Increased rate of unemployment reduces the purchasing power
of the customers. The businesses will suffer as the consumers
will not purchase more goods and services due to lack of
income. The rate of unemployment in the US has reduced from
4.9 in 2016 to 4.8 in 2017 and then to 4.4 in 2018 (Vermaat,
Sebok, Freund, Campbell, & Frydenberg, 2017). The customers,
therefore, have more income to spend, thus increasing the sales
of the company. This has enhanced the Google’s growth due to
increased revenue.
The federal fund rate for the US is at 2.25 % which indicates an
economy that is healthy. This shows that the environment favors
business deals. The current prime rate is at 5.5%. The federal
rates and the borrowing rates will make it possible for Google
to borrow money from banks and utilize it for business
development. The loans will be easier to obtain and with
favorable interests.
The demand for Google products has increased over time due to
the increased internet activities. This is due to the effectiveness
and the convenience of the products such as the search engine
(Vermaat, Sebok, Freund, Campbell, & Frydenberg, 2017). Most
of the products are also offered for free increasing the demands.
Google products have the normal demand and supply curves as
shown below.
Some of the recommendations that would help Google maintain
their market shares includes developing merit products such as
educating the public on matters relating to information
technology, advancement in the field of information technology
bringing about new products for Google, investment in product
differentiation and also increase the customer focus to ensure
that their customers are satisfied. Google should also focus on
developing new products, embrace flexibility and also ensure
that the company’s management is conversant with the current

11. market trends as well as the evolving technology. Google should
also increase their relationship with the customers. This will
make it easier for Google to form their product consumers as
their brand agents. Through implementations of these strategies
Google will continue enjoying their large market share as it is
currently.
References
Budiharjo, B. (2018). Google, Translate This Website Page-
Flipping through Google Translate's Ability. Proceedings of the
Fourth Prasasti International Seminar on Linguistics (Prasasti
2018). doi:10.2991/prasasti-18.2018.84
McDonnell, J. (2018). Economics for the Many. Brooklyn, NY:
Verso Books.
Mohr, P. (2019). Economic Indicators.
Nurboja, B. (2017). Efficiency and Market Structure of the
Banking Industry in Southeast Europe: Doctoral Dissertation.
Vermaat, M. E., Sebok, S. L., Freund, S. M., Campbell, J. T., &
Frydenberg, M. (2017). Discovering Computers, Essentials
©2018: Digital Technology, Data, and Devices. Boston, MA:
Cengage Learning.
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