Zip- 6’s Brazilian unit
you discussed Keith’s concerns with establishing Greenfield ventures in Bolivia and Peru, at the urging of the head of Zip- 6’s Brazilian unit and you discussed some entry alternatives. In this Assignment, you are asked to assume the role of a Zip-6 Business Analyst preparing a report for Ravi and Keith outlining the possible economic and political risk factors involved in establishing plants within these two countries. For this Assignment, research the following web resources:
Look up Bolivia and Peru on the CIA Fact Book site and the Michigan State University globalEDGE site by placing the links below in your browser:
CIA Fact Book: https://www.cia.gov/library/publications/the-world-factbook/index.html
Michigan State University globalEDGE™ website: http://globaledge.msu.edu/Countries
Respond to the following checklist items:
Checklist:
- Analyze the possible political risks in building plants in each of these countries (Bolivia and Peru)
- Analyze the possible economic risks in building plants in each of these countries (Bolivia and Peru)
- Outline these risk factors for each country in your report
Political Risk Factors according to Hill, (2011) refers to “The likelihood that political forces [or the government] will cause drastic changes in a country’s business environment that will adversely affect…goals of a business enterprise” (p.82).
Economic Risk Factors according to Hill, (2011) refers to “The likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit or other goals of a particular business enterprise” (p. 83).
Reference
Hill, C.W. (2011). Global business today (7 ed.). New York, NY: McGraw- Hill.
