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FOR DR. MAKAYLA
Pricing and Exchange Rates
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.
Part Ia
800+ words plus completed table
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.
Risk
Importer
Exporter
L/M/S
How to Overcome It
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
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.
Decision-Making in a Global Economy
In a recent State of the Union Address, the President of the
United States announced the formation of the "National Export
Initiative," an important endeavor that is necessary for long-
term, sustainable economic growth for the country. The
president's goal is to double exports within 5 years, which, it is
hoped, should reduce unemployment by adding 2 million jobs.
This is the first time in history that the United States has put a
real focus on government-wide export promotion.
Since then, the president has signed an Executive Order that
formed the "Export Promotion Cabinet" within the presidential
administration. The Department of Commerce is an important
player in this initiative and is charged with making sure that
U.S. businesses can actively participate in international markets
by increasing their exports of goods, services, and agricultural
products.
Part 1b
If you were a member of the Cabinet, what would you do to
achieve these goals?
Address the following in 1,000+ words:
1. Increase exports of small and medium-sized businesses.
a. What kind of programs should be put in place to improve
information?
b. What kind of technical assistance should be given to first-
time exporters?
i. What kinds of education do first time-exporters need to do
business overseas?
c. How can the government assist these exporters with new
opportunities in international markets?
2. What other kinds of assistance can the government give?
3. Where should the trade missions go, and why?
4. How can consumers help?
5. What will this mean for business costs?
6. How can the banks help?
a. What does the Export-Import Bank do?
7. What macroeconomic policies would be helpful?
a. Should the Fed involve itself more in the foreign exchange
rate?
b. Should interest rates remain low?
8. How do you reduce barriers to trade? What issues do you
think will come up in new markets, with old trade barriers and
enforcement of current trade agreements?
9. How does the also increase services trade?
10. How does all this achieve the president’s objective of
reducing unemployment and increasing GDP?
11. Are there any risks to businesses with this new policy?
12. Are there any risks to U.S. fiscal, monetary, or trade
policies?
Part II
500+words
Part of a business strategy you are considering involves the
reduction of labor and material costs. Your CFO suggested
doing some of the manufacturing overseas. The concern in
moving some of your manufacturing offshore may be that you
achieve lower costs of production but lose quality control (a
trademark of your brand) and perhaps even reduce morale in
your company by laying-off those workers whose jobs were
being performed overseas. These are serious issues. You asked
your CFO to outline the benefits and disadvantages of doing so
in regards to your relationship with your employees, balance
sheet, quality, and service.
Explain 3 additional benefits and 3 additional disadvantages
that would concern you and the economy and answer the
following questions:
· What would you conclude?
· Is there something else you can do with those employees that
you would be laying off?
Part III
500+words
In your quest to understand how your employees would be
affected by any of the decisions you are going to make, you also
realize that your labor costs may not be the real source of your
balance sheet problems. After all, you are manufacturing in a
region that attracts many immigrants, which, because of an
increase in the labor pool, actually keeps your labor costs
relatively low. This sparked the question about why Americans
continue to be concerned about immigration policy and what the
debate is about. You want to know more.
Explain the following:
· What effect does immigration have on wages?
· Does immigration help or hurt a country’s output?
· What are the advantages of immigration?
· What are the disadvantages of immigration?
· What are some of the current political and economic issues
regarding immigration?
· What is the debate surrounding the Dream Act about?
BUS 1
Mini Exam – Chapters 1 – 4
40 Points
Short Answer – Mind your time
Answer one question from each Pool (1-4). Answer a fifth
question from
Pool 5 for extra credit. Question point count weighted equally.
Demonstrate / synthesize the bigger picture of business from
within our economic framework.
Pool (1)
1. Describe how governments can foster entrepreneurship and
encourage the creation of wealth.
2. Trace the evolution of American business. Identify the key
trends, and discuss the implications these
trends have for the future.
3. Competition among businesses has never been greater.
Identify and describe several ways that
businesses can become more competitive.
Pool (2)
1. Discuss the views of economist Adam Smith. How does the
"invisible hand" philosophy suggested by
Smith benefit society as a whole?
2. Identify and describe the four (4) basic rights that form the
foundation of capitalism.
3. Design / draw / diagram the fundamental aspects of all
economic systems. Talk briefly to your diagram.
Pool (3)
1. Fully explain the difference between comparative and
absolute advantage in global markets.
2. Define offshore outsourcing and explain its pros and cons.
3. Identify the three questions that an ethics-based manager
should ask when facing a potentially unethical
action, and provide an example situation where you would use
these questions to evaluate a decision.
Pool (4)
1. Social / Ethical Scale (not slope). We viewed, diagramed and
discussed two opposing forces that stress
business fabric / ethical action. Draw and discuss as
appropriate.
2. We chose to focus in upon two basic ethical theories /
worldviews that guide the decisions that people
make – in business and in all walks of life. Name each and
briefly describe the importance of each in a
business context.
3. Briefly define Business Ethics and then describe the
framework of Corporate Social Responsibility.
Drawings welcomed.
Pool (5)
1. Describe what we mean by greening and thinking green. List
several ways that people and businesses
are participating in the green movement. List business
opportunities that may emerge from this
movement.
2. What is demography? Identify several demographic
trends in the United States and discuss how they will
impact / influence / affect U.S. businesses.

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FOR DR. MAKAYLAPricing and Exchange RatesAs a business owner.docx

  • 1. FOR DR. MAKAYLA Pricing and Exchange Rates 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. Part Ia 800+ words plus completed table 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. Risk Importer Exporter L/M/S How to Overcome It Economic conditions Fluctuations in industry Competition
  • 2. Technological change Change in preferences Costs and expenses Regulations Expropriation Interest rates Government monetary policy
  • 3. Government fiscal policy Internal and external wars Difference in culture and religion Ownership of factories and property Human resource restrictions Intellectual property Discrimination
  • 4. 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. Decision-Making in a Global Economy In a recent State of the Union Address, the President of the United States announced the formation of the "National Export Initiative," an important endeavor that is necessary for long- term, sustainable economic growth for the country. The president's goal is to double exports within 5 years, which, it is hoped, should reduce unemployment by adding 2 million jobs. This is the first time in history that the United States has put a real focus on government-wide export promotion. Since then, the president has signed an Executive Order that formed the "Export Promotion Cabinet" within the presidential administration. The Department of Commerce is an important
  • 5. player in this initiative and is charged with making sure that U.S. businesses can actively participate in international markets by increasing their exports of goods, services, and agricultural products. Part 1b If you were a member of the Cabinet, what would you do to achieve these goals? Address the following in 1,000+ words: 1. Increase exports of small and medium-sized businesses. a. What kind of programs should be put in place to improve information? b. What kind of technical assistance should be given to first- time exporters? i. What kinds of education do first time-exporters need to do business overseas? c. How can the government assist these exporters with new opportunities in international markets? 2. What other kinds of assistance can the government give? 3. Where should the trade missions go, and why? 4. How can consumers help? 5. What will this mean for business costs? 6. How can the banks help? a. What does the Export-Import Bank do? 7. What macroeconomic policies would be helpful? a. Should the Fed involve itself more in the foreign exchange rate? b. Should interest rates remain low? 8. How do you reduce barriers to trade? What issues do you think will come up in new markets, with old trade barriers and enforcement of current trade agreements? 9. How does the also increase services trade? 10. How does all this achieve the president’s objective of reducing unemployment and increasing GDP? 11. Are there any risks to businesses with this new policy? 12. Are there any risks to U.S. fiscal, monetary, or trade
  • 6. policies? Part II 500+words Part of a business strategy you are considering involves the reduction of labor and material costs. Your CFO suggested doing some of the manufacturing overseas. The concern in moving some of your manufacturing offshore may be that you achieve lower costs of production but lose quality control (a trademark of your brand) and perhaps even reduce morale in your company by laying-off those workers whose jobs were being performed overseas. These are serious issues. You asked your CFO to outline the benefits and disadvantages of doing so in regards to your relationship with your employees, balance sheet, quality, and service. Explain 3 additional benefits and 3 additional disadvantages that would concern you and the economy and answer the following questions: · What would you conclude? · Is there something else you can do with those employees that you would be laying off? Part III 500+words In your quest to understand how your employees would be affected by any of the decisions you are going to make, you also realize that your labor costs may not be the real source of your balance sheet problems. After all, you are manufacturing in a region that attracts many immigrants, which, because of an increase in the labor pool, actually keeps your labor costs relatively low. This sparked the question about why Americans continue to be concerned about immigration policy and what the debate is about. You want to know more. Explain the following: · What effect does immigration have on wages? · Does immigration help or hurt a country’s output?
  • 7. · What are the advantages of immigration? · What are the disadvantages of immigration? · What are some of the current political and economic issues regarding immigration? · What is the debate surrounding the Dream Act about? BUS 1 Mini Exam – Chapters 1 – 4 40 Points Short Answer – Mind your time Answer one question from each Pool (1-4). Answer a fifth question from Pool 5 for extra credit. Question point count weighted equally. Demonstrate / synthesize the bigger picture of business from within our economic framework. Pool (1) 1. Describe how governments can foster entrepreneurship and encourage the creation of wealth. 2. Trace the evolution of American business. Identify the key trends, and discuss the implications these
  • 8. trends have for the future. 3. Competition among businesses has never been greater. Identify and describe several ways that businesses can become more competitive. Pool (2) 1. Discuss the views of economist Adam Smith. How does the "invisible hand" philosophy suggested by Smith benefit society as a whole? 2. Identify and describe the four (4) basic rights that form the foundation of capitalism. 3. Design / draw / diagram the fundamental aspects of all economic systems. Talk briefly to your diagram. Pool (3) 1. Fully explain the difference between comparative and absolute advantage in global markets. 2. Define offshore outsourcing and explain its pros and cons. 3. Identify the three questions that an ethics-based manager should ask when facing a potentially unethical action, and provide an example situation where you would use these questions to evaluate a decision. Pool (4) 1. Social / Ethical Scale (not slope). We viewed, diagramed and discussed two opposing forces that stress business fabric / ethical action. Draw and discuss as appropriate. 2. We chose to focus in upon two basic ethical theories /
  • 9. worldviews that guide the decisions that people make – in business and in all walks of life. Name each and briefly describe the importance of each in a business context. 3. Briefly define Business Ethics and then describe the framework of Corporate Social Responsibility. Drawings welcomed. Pool (5) 1. Describe what we mean by greening and thinking green. List several ways that people and businesses are participating in the green movement. List business opportunities that may emerge from this movement. 2. What is demography? Identify several demographic trends in the United States and discuss how they will impact / influence / affect U.S. businesses.