Categories
International Economics

Describe the economic risk factors for a global business decision.

Economic Risk and Foreign Investment
The following Course Outcomes are assessed in this assignment:
MT220-3: 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.
Assignment Details
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 present in another country is also important as the accurate evaluation of these factors can impact business decisions and resulting outcomes. In this assignment, you will have the opportunity to apply research to recommend a course of action for a given business scenario.
Scenario: As the owner of a U.S. based coffee distributor, you have the opportunity to acquire a competing coffee processing facility based in another country (use the country you chose for your Unit 3 and 5 Journals). The acquisition price is below book value. After completing some marketing research, 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 as well as the market challenges and opportunities present in your chosen country.
For this assignment, use your research from your Unit 3 and 5 Journals to develop an informative essay addressing the checklist items below.
Assignment Checklist:
Identify two political risks associated with this offer.
Specify two economic risks associated with this offer.
Explain two legal risks associated with this offer.
Describe how the known market opportunities and challenges in this country 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 your textbook, a website recommended in a past journal, discussion, or assignment, 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 informative essay 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.”

Categories
International Economics

Is it possible to reach a market equilibrium if the price of orange juice PJ remains unchanged?

General Instructions – PLEASE READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions
Q1
Consider the market for orange juice. In this market, the supply curve is given by QS = 100PJ −20PO and the demand curve is given by QD = 1000−150PJ +100PC, where J denotes orange juice, O denotes Orange, and C denotes coffee.
Assume that PO = 10 and Pc = 8. Calculate the equilibrium price and quantity in the Orange juice market. (1 mark)
Suppose that a poor harvest season raises the price of oranges to Po = 15
Draw a graph to illustrate your answers. (1 mark)
Is it possible to reach a market equilibrium if the price of orange juice PJ remains unchanged? Why? How much quantity of orange juice will finally be exchanged on the market? (2 marks)
Find the market price necessary to restore equilibrium. Deduce the equilibrium quantity of orange juice. (2 marks)
Answer:-
Q2
Suppose the price elasticity of demand for the market of mobile phones is 0.90.
a.If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase or decrease? (1 mark)
b.If a single mobile-phone company increased its price, would you expect the company’s total revenue to increase or decrease? Explain. (2 marks)
c.Suppose that the price in the market is initially $10 and the quantity demanded is 100 units. If the price in this market increases by 10%, what will be the percentage change in the quantity demanded? (2 marks)
Answer:-

Q3
If you have SAR 50,000 to start a new business, you can earn 10 percent interest on money in a bank account. Your business expenses are SAR 22,000 per year on rent, SAR 18,000 per year on supplies, and SAR 5,000 per year on part time help. As for your personal expenses, your apartment costs you SAR 12,000 per year and your personal bills are an extra SAR 6,000 per year. What is your opportunity cost of running the business? (4 marks)
Answer:-