National Business Environments and Financial System

International Business Practices MGM 355

PART 1 National Business Environments

1,000–1,200 words

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

1,500-2,000 words

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.