Economics Homework Help

EU Business School Global economics In Foreign Investment Decisions Discussion

 

Task

Formalities

  • Minimum length of the assignment 1500 words –
    Maximum 2000 words.
  • Essay form
  • Relate your answers to the concepts delivered in
    class.
  • Font: Arial 12,5pts. Line-spacing: default.
    Text-align: Justified.
  • Bibliography/References in Harvard style.
  • You may use Appendixes. These and the References
    do not count for the total wordcount.

Look at the
following discussion topic and answer the related questions:

Topic

Dibimilano
(http://www.dibimilano.it/) is one of the brands of the company
Alfaparf Group. (http://www.alfaparfgroup.com/) They are considering
growth strategies and have identified two possibilities – a) continue
expanding in Russia after having set up an office in Moscow by
opening a second office in St. Petersburg or enter into the Latin
American market through Brazil by setting up an office in both Sao
Paolo and Rio de Janeiro. They have got in touch with you so that you
prepare an economic study of the two options.


Question 1
Identify the economic indicators you consider would be of most
relevance to company in comparing two BRIC markets and use them to
compare the two economies.(Related to the first evaluation criteria –
see table below)

Question 2a

Supporting
your answer with data, compare the ease of doing business and the
openness to foreign trade of the two countries.

Question 2b

Evaluate
how vulnerable each country is to external change – you should
identify possible threats of external change such as changes in the
value of the dollar; in the market price of oil, possible
protectionist measures, increasing rivalry between the USA and China
etc, and evaluate the impact that they could have on the economy of
the two countries. (Related to the third
evaluation criteria – see table below)

Question 3

On the basis of
your analysis, recommend which country dibimilano should continue
their expansion into.