Assignment Three and Four Due Thursday, March 7
Use the following information to create a set of recommendations.
You are on the upper management team of a large USA based company the sells integrated circuits and gas turbines.The company plans to expand production to minimize transportation cost.The CFO has made it clear that the exchange rates of return profits are a risk that management needs to consider.Before the CFO signs off on the deal, the risk must be explained using data. A consulting economist has given the management team tools to help management make their recommendation to the CEO.
Your recommendation to the CEO and CFO must include the following:
- At least three countries for each product
- The justification for each country (simply saying 1, 2, three markets will not work)
- Explanation of predicted risk to exchange rates for each country
- Hint Balance of payments
- Overall recommendation to the CEO (i.e., the best location)
How does your recommendation change if the location must serve both productions.