National Business Environments and Financial System
International Business Practices MGM 355
PART 1 National Business Environments
You want to launch a business internationally, and you need to choose 3 countries—1 in the Middle East, 1 in Asia, and 1 in Latin America.
- What are some of the components of these cultures that you need to understand from a business standpoint?
- How are they different in each country? Specifically, what considerations will be necessary to facilitate collaboration across these cultures? Identify supervisory skills appropriate to respond to your considerations.
- Can you have a U.S. management style in these countries? In support of your answer, show how various issues would influence the success of multicultural teamwork.
- How are their economic systems classified? Explain why they are classified as such.
- After studying these countries, explain whether you should or should not move forward with your business plan.
PART 2 International Financial System
A regional bank has decided to open an office overseas for serving those businesses that are expanding internationally. Choose a country with a large financial center that you believe would be helpful to your customer base.
- Discuss some of the challenges you may face in this new environment.
- What are the cultural, ethnic, social, and educational characteristics?
- Describe the political and legal systems.
- How much does the government intervene in the private sector?
- How will that affect your financial institution?
- What type of economic system does it have?
- What is the history of that economic system?
- How is the country involved in international trade?
- How does the government get involved in trade issues?
- Will that help or hurt your financial institution?
- Will your presence in this country be helpful in your attempts to invest in other developing countries?
- Is this country involved in any regional integration efforts? How so?
- Why did you choose this location for your bank?
- As a manager, what would be your overall assessment about whether you want to pursue opening an office there?
- Are the financial risks worth taking?
- Will it be beneficial to all of the stakeholders?
In pursuing this, what type of presence do you think would be best suited to your objectives?
- How should the plant be financed?
- Should they hedge foreign exchange or something else? Explain.
- Identify 3 foreign exchange instruments you would recommend?
- What, if any, government regulations that would affect earnings and cash flow should they be aware of?
- Include the need to be aware of inflation and interest rates and how it affects exchange rates.
- Keep in mind that the country that the plant is in does not necessarily have to be where the financing is done.